Domtar annual review 2 0 0 7 • v o l . 01 this is domtar Getting to know North America’s newest leader in fine papermaking being annual review number oneInterview with Raymond Royer P r e s i d e n t a n d c e o Domtar Corporation paper is part of everyday life Ask Cougar® a strategically positioned production system Domtar is proud of its papermakers. Find out where it all happens…

sustainability: putting words into action • new product development • one team, one goal, 13,000 strong • air, water, fire and earth Great ideas always command greater attention. That’s why you need Cougar®. Offering standout performance, Cougar remains the favorite for its power to amaze and impress. Cougar’s stellar brightness and balanced 98 GE white shade — in addition to its smooth, uniform print brightness surface and high opacity — deliver rich, vibrant colors and sharp images with startling results. With consistent performance, both on press and off, Cougar provides FSC uncompromising quality and excellent value. Containing certified 10% post-consumer fiber, Cougar is now FSC-certified and a premiere member of the Domtar EarthChoice® Smooth family. For guaranteed success and a performance that & Vellum commands attention, always remember to ask for Cougar. finishes

Domtar is pleased to make an annual contribution of $275,000 to WWF from the sale of Cougar brand products.

© 1986 Panda symbol WWF-World Wide Fund For Nature (also known as World Wildlife Fund) ® “WWF” is a WWF Registered Trademark cougar ® 2007 ANNUAL REVIEW

Michel A. Rathier Editor in Chief

Editorial Team

Marie CHAMBERLAND Richard DESCARRIES Bérangère PARRY Lyla RADMANOVICH

Contributors

Linda BÉLANGER Pascal BOSSÉ Guy BOUCHER Michael CROSS Michel DAGENAIS Tom HOWARD Patrice LÉGER-BOURGOUIN Jim LENHOFF 14 Rick MULLEN Chantal NEPVEU governing for success Domtar is Mélanie PAILLÉ committed to the highest standards of ethical behavior Gilles PHARAND and business conduct. Norm RITCHIE Kathy WHOLLEY

Features 22 looking great Want your organization to Writers Jay Beaudoin (Domtar, make its best impression? Then start with Domtar papers. Woodland, Maine) Cindy Krzysiak (Domtar, Technology Manager) Production notes: 34 footprint Domtar has a broad geographic Graphic Design Paper: Cover printed on FSC‑certified footprint, with manufacturing or distribution facilities in and Print 65 lb. Cougar Cover, Smooth Finish Production Text printed on FSC‑certified 37 of 50 U.S. states and seven of ten Canadian provinces. 70 lb. Cougar Text, Smooth Finish Ardoise Design Communications, Ink: Montreal, QC, Canada Outside front cover and outside 56 back cover printed with UV ink out of 4‑color process with a one team, one goal Domtar fields one dot‑for‑dot dull varnish Dailey & Associates, of the most accomplished teams in the paper business. West Hollywood, CA Inside front cover and inside back cover as well as all text pages printed with conventional Photography ink out of 4‑color process with a dot‑for‑dot dull varnish 66 Pierre Charbonneau Press: a dedicated commitment Pierre Crevier Printed on a 12‑color to its communities Domtar considers Ronald Maisonneuve 40" Heidelberg Speedmaster 102P press, equipped with interdeck David Zaitz and end-of-press UV drying. its employees the living embodiment of its commitment to community development. Printing

Williamson Printing Corporation, Dallas, TX

Contacts [email protected] Cert. no. SW-COC-002844 [email protected] Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 03 contents

09 53 31 this is home team domtar Safety Meet an first… 04 industry leader and last An interview with Raymond Royer, production Domtar’s President and system 21 57 Chief Executive Officer Mills, converting and distribution centers

paper is Sustainability part of 71 the essence of Putting everyday being life number words On the cover into action Raymond Royer one and The industry’s Dylan most trusted Heart, soul brands and spirit Being number one Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Interview ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 05

he shaping of Domtar Corporation combined the assets of Domtar Inc. with the fine paper business of Weyerhaeuser Company, two papermaking organizations, to create a new leading North An TAmerican manufacturer of uncoated freesheet (UFS). interview Being number one means more than being the biggest. with It also means being the best. As Raymond Royer Raymond Royer suggests, the Company will leverage its newly augmented strengths to earn the trust of Domtar Corporation’s President and its customers and generate shareholder value. Chief Executive Officer

What virtues of creating the industry production capacity, building on our respective Q leading maker of UFS made this combina- distribution networks and customer base and tion a compelling transaction for you? lowering our delivered unit costs, which have become important with rising fuel prices. I see First and foremost, it will help us face the the potential to make Domtar much greater than A challenges of a maturing market while the sum of its parts. making us financially stronger.W e now have an extensive pool of expertise, which is supported Big is usually better, but what are the by a great group of mills, having retained the best Q specific advantages of being the leading performers of both predecessor companies. Our maker of UFS that should translate into share- corporate culture is strong and entrepreneurial, holder value? focused on meeting customer expectations. We have market leadership in the crucial busi- This deal was transformative. With our costs. We have also shifted some products to mills ness papers segment. The combination was A critical mass came economies of scale, where they can be produced more competitively. an accretive way of investing in very efficient market awareness, improved access to capital Substantially all of our high volume paper products and the opportunity to de-leverage our balance will be manufactured on paper machines that are sheet. We have retained the best performing first and second quartile in terms of costs.W ith our facilities and rationalized some that were less increased marketing and distribution capability ‘‘ I see the potential cost-efficient. We have reproduced commercial we can supply the very largest or the smallest of to make Domtar match of our most popular grades. This means customer mandates. I’m particularly excited about that the same recognized brand-name product our potential to build brand recognition for our much greater (such as Husky® or Lynx®) is manufactured at products and increase our market share. than the sum of more than one location with the same quality standard. In this way, we take advantage of our its parts.’’ extended mill footprint and reduce our delivered 06 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Interview ⁄⁄⁄ 2 0 0 7

‘‘This will be a great business to be in for a long time to come.’’

Demand for UFS in North America appears Q to be on a slow, structural decline. Is becoming the biggest producer a case of ensuring that Domtar will be the proverbial ‘last man standing’?

This will be a great business to be in A for a long time to come. UFS paper is One could say that 2007 was a transitional the stronger Canadian dollar on our Canadian fragmented into different paper grades, which Q year conducted against the backdrop of a operations. This allowed us to reduce our debt by come in many sizes, shades, colors and basis weakening North American economy. How would more than $350 million since the end of March 2007. weights for various applications. Each application you characterize the Company’s performance? All of this augers well for Domtar’s stakeholders has its own unique demand trend and elasticity. in the future. For example, direct mail has a flat to positive All things considered, I’d say most gratifying. demand trend. In grades that are in structural A Integrating two entities is an enormous How would you assess the progress decline, our geographic coverage, proximity to undertaking but our people have gone through Q achieved in integrating the assets of the customers and efficient assets provide us with this in the past. There were difficult decisions two companies? a tremendous advantage. If required, we can taken to close or downsize operations, affecting consolidate production to lower cost facilities and employees, families and communities. It’s always As of December 30, the full year synergies achieve greater uniformity in terms of quality and the most difficult part of my job and we strive to A run-rate of what has been achieved consistency providing good potential for market do it in the most respectful way. is $130 million. That includes synergies from share growth. All this assures that we keep our In terms of performance, Domtar achieved a sharing of best-in-class practices, logistics and mills operating at optimal capacity, and avoid pro forma EBITDA of approximately $900 million transportation, procurement, etc. I’m confident discounting to drum up volume. in 2007 despite upward pressure on energy, fiber that we will meet or perhaps exceed our original and chemical costs, as well as the impact of Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Interview ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 07

forecast of $200 million in synergies (run-rate) by What does the economic environment December 2008. Q look like for 2008? Priorities for 2008 include completing the synergy program and transitioning IT services Despite the slowing economy, the bigger in operations. We are also committed to finding A story of 2008 looks like cost inflation the best solution for our non-core wood business, pressure, not weaker demand or prices. Paper ship- one that balances the interests of shareholders ments look steady, inventories for major grades and the employees involved. like cut size are reasonably tight, partly a reflec- tion of consolidation throughout the industry. What remains to be done to achieve the A number of price increases during the first Q full potential of the coming together of quarter are indicative of a good supply demand these businesses? balance. The weak dollar helps sustain pricing and makes the domestic market less attractive for ‘‘ Our geographic Having picked a lot of the low hanging European competitors. Also, demand for market coverage, proximity A fruit, our primary focus for the upcoming pulp remains strong, particularly offshore. year will be to further achieve efficiency gains Costs are another story. $100+ for a barrel of to customers and and monitor continuous performance improve- crude oil has a significant impact on energy- efficient assets ments. The goal is to optimize Domtar’s strengths related supplies, while the housing crisis indirectly by implementing our new brand strategy and pushes up fiber prices.A lthough most of our fiber provide us with leveraging our distribution network and cus- procurement is hardwood, a lot of our softwood a tremendous tomer services. We made a statement when fiber supply comes in the form of residual wood we obtained “UFS” as our ticker symbol on the chips from lumber mills, many of which have shut advantage.’’ New York and Toronto exchanges. It shows how down or are taking extended downtime. So we focused we are on our business plan. We want have a big job ahead of us to contain costs. our customers to see our products as the brand name in their category and Domtar as the quality Has championing sustainability begun and service leader. Q paying off for Domtar, and if so, how? thoughts. One, Domtar is the leader bar none in producing FSC-certifiedU FS products under our Is Domtar actively seeking additional Absolutely! When dealing with renew- Domtar EarthChoice ® banner. Our Cougar ® line of Q acquisitions? A able assets like forestry, it’s important to ultra-bright premium printing papers was added demonstrate your commitment to sustainability to that list in January 2008. Two, the consumer’s Not at this time. Our goal is to complete through concrete actions. Only in this way will appetite for ‘‘sustainability’’ products or products A the blending of operations, pursue the stakeholders be convinced that such a commit- made from socially responsible producers is launching of our brands and fully implement ment is truly part of your core values. That’s why increasing. Many large buyers of paper are antici- other marketing strategies, as well as solidify nine years ago, we went for FSC certification, a pating this trend and catering to it by adopting our leadership in our major product categories. standard we are still committed to today. These ancient forest friendly or eco-paper purchasing For now, the priority and focus of our employees recognized third-party audits and chain-of-custody policies. And three, as Domtar Corporation, we can is on delivering synergies. Our commitment certifications clearly demonstrate that our com- now market and sell FSC-certified products to a to customers is to be their preferred UFS mitment to sustainability remains at the forefront much larger customer base, work with customers supplier and our actions are geared toward of our development strategy. to help spread the good word on green products establishing ourselves as the supplier of choice We are now starting to see some very encour- and educate the public on the environmental in North America. aging results. Sales of our FSC-certified products benefits. Frankly, paper manufacturers in some actually doubled from 2006 to 2007, and this is of the low-cost countries have their eye on large just the tip of the iceberg. Just marry these three 08 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Interview ⁄⁄⁄ 2 0 0 7

‘‘We want our customers to see our products as the brand name in their category.’’

paper markets like North America, but they won’t be able to make the social and environmental case like we can — not even close! — which is why we will forcefully advocate for our line of Domtar EarthChoice products.

The political landscape appears to be Q changing with respect to global warming with such approaches as carbon taxes and emissions trading now on the table. Is this a concern?

Actually, it would be a net plus for Domtar. How can Domtar bring more stability for that Domtar finds itself in a very good situation, A For years now, our pulp and paper mills Q all stakeholders in a perpetually instable with the kind of market share, asset quality have worked hard to reduce their greenhouse gas industry? and mix, currency exposure, product focus and emissions. They have succeeded in reducing them continent-wide distribution network that inspires by more than 20 percent since 2002 on both an When I joined Domtar in 1996, there were confidence. ButI also need to be clear, there’s no aggregate and intensity basis and continue to work A two things this industry needed. First, room for complacency. We can always optimize on energy efficiency.W e provide about 68 percent consolidation. This would make it possible to our situation. This is, after all, a business where of the energy required to produce steam internally achieve economies of scale and ensure discipline major assets have been changing hands with through our recovery boilers and cogeneration on capital expenditures to be able to compete remarkable rapidity. Interesting opportunities assets. Approximately 69 percent of our electric on a global basis. Second, a commitment to the will come along. So will the need to be flexible. power requirements are produced internally. industry and an acknowledgement that demand Domtar employees continue to be instrumental in Furthermore, healthy, sustainable well-managed had matured, making it necessary to balance helping to manage all of this volatility. With their forests can be a great resource in mitigating the supply with customer demand. We live in a world continued dedication and professionalism, for effects of climate change and this is in line with with shortened cycles and extraordinary currency which they have my considerable gratitude, we Domtar’s commitment to sustainability. and commodity price volatility. But my instinct is can all look forward to much future success. ● 09

Maybe everyone should get to know North America’s newest leader in papermaking. ❯❯❯ domtar is the largest integrated producer of uncoated freesheet paper and the second largest in the world, based on production capacity. ❯❯❯ strictly speaking, Domtar’s business is not just making pulp and paper. ❯❯❯ Its real business is serving customers. This is why Domtar designs, makes, markets and distributes so many products — everything from business, commercial printing and publication papers, to converting and specialty papers. ❯❯❯ Among these are some of the industry’s most trusted brands, including perennial favorites such as Cougar ® , Lynx ® Opaque and First Choice ® . Not to mention Domtar EarthChoice ® — a full line of environmentally and socially responsible papers. ❯❯❯ of course, Domtar is more than a collection of mills and brands. ❯❯❯ It’s also a team of people. Arguably the industry’s most accomplished reservoir of know-how this is and dedication. ❯❯❯ And this, too, is Domtar. D o m t a r 10 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ This is Domtar ⁄⁄⁄ 2 0 0 7 bigger better+

With apologies to grade school teachers everywhere, and Domtar EarthChoice® — quite possibly the How two sometimes in business the rules of arithmetic most environmentally sustainable family of fine companies simply don’t apply. Take the case of Domtar and papers in North America. After you’ve done all your the fine paper business of Weyerhaeuser, which adding up, you’ll likely get a pretty impressive sum. came together, came together to form the largest manufacturer But the way smart business works, and the learned from and marketer of uncoated freesheet paper in genius of this particular transaction, is that the sum North America and the second largest in the world, total of the two organizations is greater than a each other, based on production capacity. simple calculation would suggest. It actually adds and got it right. Add up the two organizations’ expertise, up to a new level of leadership. Given their strategic embodied in their 13,000 employees. Add up fit, the two companies’ products, the geographic their customers, mills and capacity. Add up two location of their mills, their customers and cultures histories stretching back to the nineteenth are actually complementary. Their assets enhance century. And while you’re at it, you might also rather than compete with each other, and the tote up two product portfolios that contain result is a bigger and better Domtar — better some of the industry’s most respected brands, for its customers, better for its employees and the widest range of fine and specialty papers, shareholders.

Superior product Better customer strategic fit range: service: why this The new company, drawing on the best from Customers can choose Along with a consolidated availability and services, corporate marriage Domtar Inc. and Weyerhaeuser’s fine paper busisness, from a wider selection product range, customers such as just‑in‑time just works is a marriage made in heaven…or at least in the of premium products, have access to a larger delivery, closer to where boardroom. Here’s why: including Domtar North American customers do business. EarthChoice®, the leading footprint, so there’s environ­mental line of papers. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ This is Domtar ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 11

Steering out of the perfect storm To understand the full implications of this blockbuster marriage, we need to turn the calendar back a couple of years. At that time the North American paper industry was on the ropes — especially in Canada, where the dollar had been on a tear in recent years. The costs of fiber, chemicals and energy were also increasing. Sometimes It was the perfect storm. And it became pretty Domtar better than the sum obvious that the longer North American paper of its parts 1 + 1 = 3 producers waited, the worse the situation would The deal bringing together Domtar and Out-of-the-box thinking helped become. Clearly, it was time for some out-of- the fine paper business ofW eyerhaeuser to defy the odds and recreate the-box thinking. The only way to ride out the was a complex process of countless days challenges of a turbulent business environment and nights spent by dozens of executives Domtar — a low-cost paper was to create a North American low-cost paper hammering out the details over many producer with the capacity and producer, with the innovativeness, capacity and months. It was critical to get this deal scale to claim the lead. scale to claim the lead. exactly right, not just for the company’s Enter Raymond Royer, CEO of Domtar and shareholders, but equally for its employees and Not to mention that Raymond Royer, one of the already a veteran of successful consolidations customers. The competitive landscape was simply masterminds behind the transaction, was named while at the helm of the venerable Canadian too challenging to allow for anything less than by RISI, which tracks the global forest products paper company. His executive team understood perfect execution. industry, as North American CEO of the year. one thing: The longer they waited, the more In the final analysis, the much-heralded strategic So what’s ahead for Domtar, its employees and complete the perfect storm would become and fit between the two companies’ businesses turned other stakeholders, now that they’ve defied the the less maneuverability they would ultimately out to be precisely as predicted. In its first year, simple rules of addition? Only time will tell. have. But the sooner they took decisive action, the Domtar Corporation posted a solid performance — sooner they could return to profitability. and that’s well before the expected synergies have really kicked in.

Best practices: Best paper machine More sustainable for best paper: operations:

Two industry leaders With a wider inventory right product, based on A sustainable enterprise waste, while optimizing come together to of paper machines to market demand, location is a more profitable recycling and reuse. share ideas and learn choose from, Domtar and other factors. This enterprise in the long Customers increasingly from each other. can match the right also produces higher and run. With less duplication want to be associated Result: The best of both paper machine to the more consistent quality. and greater streamlining, with sustainable partners. organizations. Domtar reduces its So do shareholders, energy use, shipping and employees and neighbors. George S. Patton once said, “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.”

In 2007, the people at Domtar Corporation showed they really knew what he was talking about because their ingenuity came out in spades! Domtar became the number one integrated producer of uncoated freesheet paper on the continent and second largest in the world, based on capacity. This deal was more than an integration. It gave birth to a solid a new leader in the industry, beginning changing the face of pulp and paper manufacturing in North America. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ This is Domtar ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 13

a # delivering always team1 like a leader better

In 2007, Domtar Corporation became a To be successful in an industry with fierce As with any initiative of this magnitude, $6-billion company with a production and competitors, the new Domtar must make some projects are always easier to implement operational capacity that spans the continent sure that it produces the papers preferred by than others. Domtar continues to work from the shores of Newfoundland in Canada its customers at the best possible cost. The on improving performance, optimizing its to southern California. It has some of the most combination of two large portfolios of assets equipment, increasing service levels and efficient and cost-competitive paper mills provided an opportunity to identify areas balancing production with demand. It has in the world, and a 13,000-strong employee where potential efficiencies can be generated simplified its ordering system to make population with the skills to ensure that its (i.e. where productivity can be increased or supplying customers more efficient, as customers reap the benefits of their new, money can be saved by combining activities). well as enhanced some of its product lines. improved supplier. Special teams were mandated to complete Increased customer demand for Forest “This combination further reaffirmed a review of the Company’s operations. The Stewardship Council (FSC) certified papers our business strategy of consolidating our results of this exercise generated more was also addressed, with the addition of presence in fine papers. Today Domtar’s than 650 projects that enabled Domtar to reach its premium Cougar® Opaque as well as sales of paper and pulp stand at 82%, and $130 million (run-rate) in improvements and Domtar Hots® to the Domtar EarthChoice® we capture an impressive market share in savings at the end of 2007. family of environmentally and socially many product categories including business “This is a case where the numbers speak responsible papers. papers, offset and opaque papers,” said for themselves,” said Raymond Royer. “We “It is not just a question of having become Raymond Royer, President and Chief Executive had set a target of $80 million in synergies bigger but we have also become better. Our Officer. The remainder of the Company’s by year-end but managed to surpass that employees have worked hard to generate business comprises sales from Domtar-owned by $50 million. Based on our success thus a good performance for our shareholders merchants (14%) and wood (4%). far, we are confident that we can achieve and during this period of intense change. I think perhaps even exceed our ultimate goal of our results demonstrate that the course set $200 million (run-rate) in synergies by the end from the very beginning was a sound one, of 2008.” and that we are on the path to even further improvement,” concluded Raymond Royer.

Domtar in numbers #1 1.2 # 2 4.6 6 15 19 integrated million air dry integrated million tons billion dollars pulp and converting employees producer of metric tonnes producer of of uncoated in sales paper mills and uncoated of market pulp, uncoated freesheet paper distribution freesheet net of external freesheet paper production 26 operations, paper in purchases in the world capacity paper including

North America (based on machines 13,000 (based on production 238,000 tons 14 production capacity) of coated located offsite capacity) groundwood production capacity governing successfor

Domtar is a company rooted in values. Domtar’s board The Company strives to foster a work environment that puts a high value on commitment, discipline, entrepreneurship, initiative, is comprised innovation, integrity, judgment, leadership, perseverance, and — most importantly — respect. These shared values lie at of 13 highly the very heart of Domtar’s success. experienced and

omtar is committed to the highest standards of ethical behavior and business conduct. knowledgeable This standard governs its relationships with customers, suppliers, shareholders, competitors, and the communities in which it operates, as well as relations among directors. D Domtar employees at every level of the organization. The Company has rigorous internal policies and processes that guide its activities and ensure that Each director has independent status on the board, in it complies with the corporate governance guidelines issued by the United States Sarbanes-Oxley compliance with the Company’s Director Independence Act of 2002, the Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE) Standards and the independence requirements of the SEC and the Toronto Stock Exchange (TSX). and the NYSE with the exception of Mr. Raymond Royer, Domtar’s activities are overseen by a board of strong and independent directors, which is itself Domtar’s CEO, and Mr. Marvin Cooper, Domtar’s COO. governed by rules that define the board’s responsibilities, its committees, the conduct of its Mr. Harold H. MacKay is the chairman of the board of directors and its various practices. the Company. Mr. MacKay has served as Counsel to the law firm MacPherson Leslie & Tyerman LLP in Regina, Domtar’s governance system also relies on reputable independent auditors, who audit annual Saskatchewan since 2005. Previously, he was a partner in financial statements and interact with the board of directors and management. the firm from 1969 to 2004.H e also served as the Clifford Clark policy advisor to the Department of Finance of Canada and chaired the Task Force on the Future of Conduct that is becoming of… the Canadian Financial Services Sector in 1997 and 1998. He is a director of The Toronto-Dominion Bank and The Management and employees all carry out their responsibilities in accordance with a clear Code Mosaic Company. Mr. MacKay is an Officer of theO rder of of Business Conduct and Ethics. The Code is an expression of Domtar’s core values and provides Canada. Mr. MacKay is the chairman of the Nominating a framework for decision-making. Its purpose is to help everyone comply rigorously with laws and Corporate Governance Committee. and regulations and exercise good judgment. Ethical standards affect everything a company does and each individual within the Company shares responsibility for the quality of Domtar’s ethical behavior. Domtar also has internal policies that support the application of its Code of Business Conduct and Ethics.

* throughout this document “the Company” and “Domtar” refer to Domtar Corporation, its subsidiaries and its investments. s

Harold H. Raymond Jack C. Marvin D. Louis P. Brian M.

er MacKay Royer Bingleman Cooper Gignac Levitt Chairman President Vero Beach, Executive Montreal, Montreal, Regina, and CEO Florida, USA Vice‑President Quebec, Canada Quebec, Canada Saskatchewan, Montreal, and COO board mb Canada Quebec, Canada Bennettsville, South Carolina, USA m e Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ This is Domtar ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 15 A Boardroom Full of experience

Mr. Raymond Royer is the President and Chief Executive Mr. Brian M. Levitt has been the co-chair of the law firm Mr. William C. Stivers retired as executive vice-president Officer and a director of theC ompany. Mr. Royer has been Osler, Hoskin & Harcourt LLP since 2001. Mr. Levitt was of Weyerhaeuser Company in 2003, serving as chief president and CEO and a director of Domtar since joining chairman of the board of Domtar Inc. from 2004 until financial officer from 1990 to 2003.M r. Stivers is a former Domtar Inc. in 1996. He is also a director of Power Financial March 2007. Previously, he held a number of executive director of Factory Mutual Insurance Company and a past Corporation. Mr. Royer is an Officer of theO rder of Canada, positions with Imasco Limited, including president and member of Chase Manhattan Bank’s National Advisory a Commander of the Order of Léopold II of Belgium and chief executive officer from 1995 to 2000.M r. Levitt has Board. He is a director of Minerals Technologies Inc. He is an Officer of the Ordre national du Québec. been a director of Domtar Inc. since 1997; he is also a a member of the Audit Committee and the Environmental, Mr. Jack C. Bingleman has been the president of Indian director of BCE Inc. He is the chairman of the Human Health and Safety Committee. River Asset Management Inc. since 2001. Previously, he Resources Committee and a member of the Nominating Ms. Pamela B. Strobel retired as executive vice-president held a number of executive positions with Staples Inc., and Corporate Governance Committee. and chief administrative officer of Exelon Corporation including president of Staples International from Mr. W. Henson Moore was, from 1995 to August 2006, in 2005. During her tenure with Exelon and its pre- 1997 to 2000. He has been a director of the Company president and CEO of the American Forest & Paper decessor companies since 1993, she also served as and/or Domtar Inc. since 2005; he is also a director of Association. Previously, he served in a number of senior president of Exelon’s Business Services Company and Tractor Supply Co. He is a member of the Nominating U.S. government appointments and as a member of as chairman and CEO of Exelon Energy Delivery, the and Corporate Governance Committee and the the U.S. House of Representatives for the Sixth District holding company for Exelon’s energy delivery businesses. Audit Committee. of Louisiana. Mr. Moore is a director of USEC, Inc. He is She is a director of Illinois Tool Works, Inc. and State Mr. Marvin D. Cooper is Executive Vice-President and the chairman of the Environmental, Health and Safety Farm Mutual Automobile Insurance Company. She is a Chief Operating Officer of theC ompany since March 2007. Committee and a member of the Audit Committee. member of the Human Resources Committee and the Mr. Cooper was the senior vice-president, cellulose fiber, Mr. Michael R. Onustock retired as senior vice-president, Nominating and Corporate Governance Committee. white papers and containerboard manufacturing and pulp and white paper with Weyerhaeuser Company in 2004. Mr. Richard Tan is, since 1977, the founder, president engineering of Weyerhaeuser Company from 2002 to 2006 Prior to joining Weyerhaeuser in 2002, he held a number of and CEO of Pacific Millennium Holdings Corporation, when he stepped down to work full-time on the series executive positions in Willamette Industries, Inc., including an investment and operating group involved in various of transactions whereby the Weyerhaeuser Fine Paper executive vice-president, pulp and fine paper marketing industries over the years, including pulp and paper, forest Business was combined with Domtar Inc. to form Domtar from 1989 to 2002. He is a director of the University of plantation, information technology, and development Corporation. Prior to joining Weyerhaeuser in 2002, he Washington Pulp and Paper School Foundation. He and global joint ventures in Asia. Mr. Tan is also the held a number of executive positions with Willamette is a member of the Environmental, Health and Safety president and chief executive officer ofS tone Tan China Industries, Inc., including executive vice-president, pulp Committee and the Human Resources Committee. Acquisition Corp., a blank check company formed in 2007 and paper mills from 1998 to 2002. His career in the Mr. Robert J. Steacy has been a corporate director since for the purpose of acquiring an operating business with pulp and paper industry spans over 36 years. May 2005. Previously, he served as the senior financial primary operations in China. He is a member of the Mr. Louis P. Gignac has been a corporate director and officer of Torstar Corporation since 1989 including as Environmental, Health and Safety Committee and the president of G Mining Services Inc. since November 2006. executive vice-president and chief financial officer from Human Resources Committee. Previously, he served as president and CEO of Cambior Inc. 2002 to 2005. He has been a director of the Company Mr. Denis Turcotte has been president and CEO of Algoma from 1986. He has been a director of the Company and/or Domtar Inc. since 2005. Mr. Steacy is a director Steel Inc. since 2002. Previously, he held a number of senior and/or Domtar Inc. since 1995; he is also a director of Canadian Imperial Bank of Commerce and Cineplex executive positions with companies in the pulp and of Gaz Metro Inc., St. Andrew Goldfields Ltd., Franco Galaxy Income Fund. He is the chairman of the Audit paper industry, including president of the Paper Group Nevada Corp. and Revett Minerals Inc. Mr. Gignac is a Committee and a member of the Nominating and and executive vice-president of corporate development member of the Audit Committee and the Environmental, Corporate Governance Committee. and strategy of Tembec Inc. from 1999 to 2002. He is a Health and Safety Committee. member of the Human Resources Committee.

W. Henson Michael R. Robert J. William C. Pamela B. Richard Tan Denis Moore Onustock Steacy Stivers Strobel San Diego, Turcotte Crested Butte, Portland, Toronto, North Bend, Winnetka, California, USA Sault Ste. Marie, Colorado, USA Oregon, USA Ontario, Canada Washington, USA Illinois, USA Ontario, Canada Domtar’s MISSION CONTROL Working from the company’s head Office in Montreal, Quebec and operations center in Fort Mill, South Carolina, Domtar’s management Committee conducts the Company’s business. It determines and implements the Company’s mission and long-term strategy. The committee also proposes fundamental financial and business strategies and corporate actions to the Board. This team leads Domtar with both experience and expertise.

Mr. Marvin D. Cooper

is Executive Vice-President and Chief Operating Officer of theC ompany since March 2007. Mr. Cooper was the senior vice-president, cellulose fiber, white papers and containerboard manufac- turing and engineering of Weyerhaeuser Company Mr. Raymond Royer from 2002 to 2006 when he stepped down to work is the President and Chief Executive Officer full-time on the series of transactions whereby the and a director of the Company. Mr. Royer Weyerhaeuser Fine Paper Business was combined was president and chief executive officer with Domtar Inc. to form Domtar Corporation. and a director of Domtar since joining Prior to joining Weyerhaeuser in 2002, he held a Domtar Inc. in 1996. He is also a director of number of executive positions with Willamette Power Financial Corporation. Mr. Royer is an Industries, Inc., including executive vice-president, Officer of the Order of Canada, a Commander pulp and paper mills from 1998 to 2002. His career of the Order of Léopold II of Belgium and an in the pulp and paper industry spans over 36 years. Officer of the Ordre national du Québec. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ This is Domtar ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 17

1 2 9 10

10 Mr. Bart Nicholson is Senior Vice-President, 1 Mr. Daniel Buron is Senior Vice-President Specialty Mills & Converting Operations. He is and Chief Financial Officer of theC ompany. He was responsible for specialty mills located in Espanola (ON), senior vice-president and chief financial officer of 5 6 Johnsonburg (PA), Rothschild (WI), Nekoosa (WI), Port Domtar Inc. since May 2004. He oversees all finance Huron (MI) as well as all the converting centers. functions including financial reporting, risk and debt Previously, from the time he joined Weyerhaeuser management, treasury operations, taxation and 5 Mr. Ghislain Dinel is Senior Vice-President, in 2002, he was vice-president, fine paper converting investor relations. He joined Domtar Inc. in 1999. Prior Northern Region Mills and is responsible for the operations. He had held various management positions to May 2004 he was vice-president, finance, pulp and following mills: Dryden (ON), Hawesville (KY), in the pulp and paper operations of Willamette paper sales division and, prior to September 2002, he Lebel‑sur‑Quévillon (QC), Prince Albert (SK), Industries, Inc. since 1981. His career in the pulp and was vice-president and controller. He has over 19 years Windsor (QC) and Woodland (ME). Previously he paper industry spans over 26 years. of experience in finance. was vice-president, operations, optimization and 11 Mr. Yves Parent is Senior Vice-President, technology of Domtar Inc. since 2004. Since joining 2 Mr. Steven A. Barker is Senior Vice- Information Technology of the Company since President, Pulp and Paper Marketing of the Company Domtar Inc. in 1970, he has held various management March 2007. He joined Domtar Inc. in 2005 as vice- and as such, he is responsible for product develop- positions in pulp and paper operations. His career ­president, information technology. He has over ment and the marketing of all pulp and paper in the pulp and paper industry spans over 37 years. 25 years of experience in IT management, including grades. He was formerly senior vice-president pulp 6 Mr. Michael Edwards is Group Senior Vice- 15 years in the pulp and paper industry and and paper sales and marketing for Domtar Inc. President, Pulp and Paper Manufacturing, responsible ten years as senior director, IT in an international since December 2004. He joined Domtar Inc. in 2000 for these operations. Formerly, he was vice-president, manufacturing organization. following the acquisition of Ris Paper Company, Inc. fine paper manufacturing ofW eyerhaeuser since 2002. 12 Mr. Gilles Pharand is Senior Vice-President, (a wholly-owned subsidiary of Domtar Inc. since 2000) He joined Weyerhaeuser in 1994, where he held various Law and Corporate Affairs since 1994 and General where he held a number of executive positions. His management positions in pulp and paper operations. Counsel since 1986. He joined Domtar Inc. in 1970. He career in the paper industry spans over 25 years. Prior to Weyerhaeuser, Mr. Edwards worked at is responsible for secretariat, environ­mental and legal Domtar Inc. for 11 years. His career in the pulp and 3 Mr. Roger H. Brear is Senior Vice-President, affairs, communications and government relations, Southern Region Mills and is responsible for the paper industry spans over 44 years. internal audit and head office operations.H is career in following mills: Ashdown (AR), Columbus (MS), 7 Mr. James F. Lenhoff is Senior Vice-President, the pulp and paper industry spans over 37 years. Kingsport (TN), Marlboro (SC), Plymouth (NC) and Distribution. He is responsible for distribution 13 Mr. Richard L. Thomas is Senior Vice- Kamloops (BC). He joined Domtar Inc. in 2001 as senior across the U.S. and Canada. He was previously senior President, Sales. He is responsible for the sale of the vice-president, paper manufacturing, following the vice-president, Domtar Distribution Group since 2004. Company’s complete pulp and paper output. In his acquisition of four U.S. paper mills from Georgia- He joined Domtar Inc. in 2000 following the acqui- previous position with Weyerhaeuser, he was vice- Pacific Corporation, where he held various senior sition of Ris Paper Company, Inc., where he was president of fine papers from 2005. Prior to 2005, he manufacturing positions. His career in the paper vice‑president, sales and marketing. His career in the was vice-president, business papers. Mr. Thomas joined industry spans over 35 years. paper industry spans over 26 years. Weyerhaeuser in 2002 when Willamette Industries, Inc. 4 Mr. Michel Dagenais is Senior Vice-President, 8 Mr. Patrick Loulou is Senior Vice-President, was acquired by Weyerhaeuser. At Willamette, he had Human Resources. He had been vice-president, human Corporate Development since he joined the Company held various management positions in operations resources of Domtar Inc. since 2005. Previously, he in March 2007. In this capacity, he assists in the value since joining in 1992. Previously, he was with Champion was director, human resources of the Forest Products optimization of Domtar’s assets. Previously, he held a International Corporation for twelve years. Group since joining Domtar Inc. in 2001. During his number of positions in the telecommunications sector, career that spans over 36 years, he has held various as well as in management consulting. He has over management and consulting positions in human ten years experience in the field of corporate strategy resources and labor relations. and business development.

9 Mr. Jean-François Mérette is Senior Vice-President, Forest Products since March 2007 and is responsible for all forestry and sawmilling operations. He was vice-president, sawmills when he joined Domtar Inc. in 2005. Previously, he held various 3 4 management positions with a major forest products 11 12 company. His career in the forest products industry spans over 16 years.

13

7 8 Kingsport

Employees with paper machine at the Kingsport, Tennessee mill, circa 1920 age a p f The early years Founded in 1848 in England, ut o Domtar’s great grandparent markets a special process protecting lumber from o ry… decay. Business booms, as railways need to protect millions of rail ties. In 1903, the company sets up shop across the Atlantic, where its new Canadian owners histo list it on the American Stock Exchange in 1930.

The paper era begins From the mid-1950s to the 1960s, Domtar grows into one of Canada’s largest companies. Its widely diversified businesses include chemicals, consumer products, construction materials, kraft and fine papers, newsprint, containerboard, and packaging.

Just paper, please Domtar comes into its own in the 1970s and 1980s, and gradually divests other interests to focus on paper in the 1990s. Management is determined to become the leader in paper manufacturing…as it will. • Domtar Corporation • • Domtar• Inc. 2007 • 2001 H• Domtar• Inc. Georgia-Pacific (Fine Paper• Mills) 1998 1990 Domtar Inc. E.B. Eddy Georgia-Pacific Great Northern Nekoosa 1970 Windsor Port Huron Espanola Woodland Ashdown Nekoosa

• • • • • • Originally built by Built in 1888 by Michigan Built in 1905 by St. Croix Paper Nekoosa–Edwards Nekoosa Paper Angus, Logan & Co. Sulphite Fiber Company Spanish River Pulp Company in 1906 began operations Company in 1883 in 1865 • and Paper Company • in 1968 • • Port Huron Paper Company • Georgia-Pacific Nekoosa-Edwards Acquired by in 1910 Acquired by in 1963 Paper Company Dominion Tar • Abitibi Power & in 1908 and Chemical Port Huron Sulphite and Paper Co. Company Paper Company• in 1916 in 1927 in 1961 • • Pentair Inc.• in 1983 Kalamazoo Vegetable The new mill E.B. Eddy in 1987 Parchment Company began operations in 1943 in 1987 • Brown Forest Industries in 1966• E.B. Eddy in 1969 Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ This is Domtar ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 19

Windsor

, Mr. Royer Employees in training at Welcome the Windsor, Quebec mill, Appointed CEO in 1996 with a mandate to bring circa 1950 Domtar to solid financial footing, Raymond Royer presides over a spectacular era of growth. In short order he: age ■■ Inaugurates a customer-focused culture a p ■■ Pioneers sustainability in the industry with f more environmental papers and third-party ut o certification o ■ ry… ■ Embarks on a major expansion, successfully integrating four paper mills from Georgia-Pacific histo Corporation (2001), thereby becoming Canada’s largest paper company in terms of sales ■■ Leads the joining together with Weyerhaeuser’s fine paper business to create a leader with sales of over $6 billion

Windsor

Windsor, Quebec mill employee with paper rolls, circa 1940

• Weyerhaeuser Company H (Fine Paper• Mills) • 2002 • Weyerhaeuser• Company Willamette•

Kamloops Plymouth Rothschild Columbus Dryden Johnsonburg Marlboro Hawesville Kingsport

• • • • • • • • • Built by North Carolina Marathon Original mill Dryden Power & Original mill Original mill Original mill Original mill Weyerhaeuser Pulp Company Paper Mills opened by Timber Co. forms opened by opened by opened by opened in 1916 as in 1965 in 1937 in 1909 Weyerhaeuser in 1911 Castanea Willamette Willamette Kingsport Pulp • • • in 1980 • in 1890 in 1990 in 1967 • Second line Acquired by Marathon First paper • Acquired by added in 1972 Weyerhaeuser Corporation machine installed Acquired by Mead in 1957 in 1944 in 1918 Curtis Publishing in 1920 • • in 1922 • American Can Acquired by • Acquired by Company Avenor Acquired by Willamette in 1957 in 1994 Penntech in 1995 • • in 1969 Acquired by Acquired by • Weyerhaeuser Weyerhaeuser Acquired by in 1973 in 1998 Willamette in 1990 ® lynxopaque

Lynx® Opaque is ideal for showcasing great ideas. With a dazzling brightness, brilliant blue-white shade and superior opacity, Lynx Opaque delivers crisp, sharp detail and colors that pack a punch — run after run, time after time. Printer-friendly Lynx Opaque offers superb value with top quality and proven performance, and is available in a broad range of sizes in both 96 GE text and cover weights. To maintain quality brightness without sacrificing creativity or losing control over your budget, you’ll want to FSC remember Lynx Opaque. certified sheets Smooth & Vellum finishes

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At Domtar we strive to do everything and Natural 11 × 17 23.62 2500 32 2836 cougar ½ 50 3200 16 2843 48,000 2965 17.5" 600 22,637 2804 Printed Samples Printed 17 ½ × 22 your confidence and your business through the offering of superior quality products, greater creative latitude. 19 × 25 60 2400 16 2928 44,000 2926 cougar Available in smooth or vellum 60 In 2007, ® dedicated service and continuous innovation. finishes, for 23 × 29 84 1800 14 2846 Brightness 23 × 35 102 1500 14 2849 24,000 2857 35" 1201 22,637 2805 lb. Te x t to earn If you’re looking for distinct paper solutions —from forthe your forest printing, floor to publishing your front ordoor business 25 × 38 120 1200 16 2852 22,000 2858 — 28 × 40 141 1200 10 2887 17,000 2894 Ranging from Double 50 Thick Cover. communications, look to Domtar to answer your every need. lb. 35 × 23 102 1500 14 2870 24,000 2914 approximately 35% About Us to 160 ® Finishes 35 × 45 199 800 14 2624 8 ½ × 11 13.78 4000 40 2826 Cougar / 28 11 × 17 27.56 2000 40 2828 — As North America’s largest integrated —manufacturerfrom the forest and floor marketer to your of front fine doorpaper and a to earn 70 ½ 58 2400 16 2844 42,000 2966 17.5" 608 19,647 2806

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At Domtar we strive to do everything ® lynx products shipments opaque 10% 28 × 40 165 1000 10 2888 15,000 2895 Acid-free Cougar offers theyyour spring confidence and to your life business on through Cougar. the offering W of superiorith its quality balanced products, longevity. 35 × 23 119 1200 14 2871 21,000 2627 Post-consumer greater 35 × 45 232 600 14 2625 dedicated service and continuous innovation. 19 × 25 80 2000 16 2866  Lynx ® were comprised of If you’re looking for distinct paper solutions for your printing, publishing or business 9 8 Opaque80 23 × 29 112 1300 14 2958 white shade and smooth surface, Cougar remains brightness All Cougar smooth products are 23 × 35 136 1100 16 2826 19,000 2962 communications, look to Domtar to answer your every need. guaranteed to perform on laser Lynx 25 × 38 160 1000 16 2960 16,000 2976 Archival ® Opaque is ideal for showcasing great ideas. With a dazzling brightness, opaqueprinters, desktop ink jet printers brilliant blue-white shade and superior28 × opacity,40 189 Lynx 750 10Opaque 2889 12,000delivers 2977 crisp, color copiers. various commercial and sharp detail and colors that pack a punch35 × 45 265 550 14 2626 Printer-friendly Lynx Opaque offers superb19 × 25 value 100 with 1500 top 16 quality 2931 and proven 130 lb. and 160 lb. Cover caliper and smoothness the first choice for prestigious projects such * FSC Electronic performance, and is available100 in a broad23 range × 35 of 169 sizes 900 in 16 both 2967 text and cover specifications represent typical values. certified Cougar Digital smooth products are weights. To maintain quality without sacrificing25 × 38 creativity 200 750 or 16 losing 2969 control over designed with enhanced properties 28 × 40 236 600 10 2890 10,000 2978 printing grades. Imaging to perform on a wide variety of your budget, you’ll want to remember Lynx —Opaque.run after run, time after time. as annual reports and corporate stationery. Smooth digital equipment, black and color laser applications, preprint offset P 3-hole punched & V uel m (60 lb. and heavier), followed by laser † 11" rolls sealed 2 per package 18" rolls laser and preprint guaranteed The Company Now FSC-certified,C ougar heads the Domtar finishes printing and post converting. B lu e -W h it e U With a dazzling 96 GE brightness Ask your local paper merchant about Domtar is pleased to make an and brilliant blue-white shade. enjoys impressive ® annual contribution of $275,000 a full line of matching envelopes. to WWF from the sale of Cougar Digital Opaque EarthChoice family of leading brand products. Unexpected opacity for a paper this white. Minimizes show-through for market shares in Envelopes greater legibility and visual clarity. © 1986 Panda symbol WWF-World Wide Fund For Nature Finishes environmentally responsible papers.(also known as World Wildlife Fund) “WWF” is a WWF Registered Trademark ® Available in smooth or vellum Offset, Opaque and finishes, for We ig h ts greater creative latitude.

Available in digital, text and cover Premium Grades. weights, in most popular formats. ® Archival For more 96 information  Acid-free Lynx Opaque offers about brightness visit us Domtar, at greater longevity.

© 2008 Domtar Corporation SW-COC-002897 Digital cut-size sheets in smooth finish Lynx Opaque is the certificate Printed number in the belonging United States to a Domtar (50 www.domtar.com FSC lb. and heavier) carry our Electronic certified sheets Digital Imaging guarantee to perform on laser For more printers, desktop ink jet printers and

Customers specify Lynx Opaqueinformation Domtar, for its dazzling 02/08 color about www.domtar.com Lit. Item # 30062514 mill copiers. Please see stocking chart visit us at that proudly produces Lynx Opaque. Smooth Recycled for more information. blue-white shade and faithful reproduction of color, line mu l & Vl e finishes ber Lynx Opaque 10% recycled is available Lit. Item # 30012794 in 01/08 sheets and rolls on a making basis only. Please contact Sales and text. And for Lynx’s value and on-press performance. manufacturing requirements and Printed in the United States Service for Nimble, proven L©ynx 2008 Domtar O Corporationpaque delivers the goods on posters, availability. brochures, direct mail and more. Lynx will be FSC-certified by spring 2008. Husky ® Offset Versatile and tireless on press, Husky Offset is a high-value performer for most printing projects. With its pleasing white shade, it’s trusted to deliver outstanding results on catalogs, newsletters, direct mail and more. HOTS ® High-impact Hots really grabs the attention. The 17 brilliant fluorescent colors raise the temperature on everything from brochures, flyers and menus to newsletters and invitations. FSC‑certified Hots is part of the Domtar EarthChoice® family of environmental papers.

® Offset Husky GE brightness, strong ink ® Offset. A reliable on-press performer, Husky’s exceptional Run after — run,Husky one paper leads the pack in trouble-free printing and consistent

quality hots versatility is guaranteed to deliver for just about any type of printing project. Its

DOMTAR attributes are solid: a pleasing blue-white shade, 92 Quick Look Quick holdout and good opacity. Its value is equally solid. Husky Offset will go the distance without exhausting your budget. And92 as GE for brightness service and gives support, documents you’ll

Domtar papers ® Look Quick find Domtar is equally reliable and true. more visual snap and presence. 2008

Domtar offers a wide range of papers for all your printing needs. Available in smooth Brightness or vellum finishes. swatchbookS If you like Domtar Hots…

Actually, we’ve barely scratched the A range of the most popular surface of what’s available from Domtar. weights and reply card stock is For a full rangeoffset of swatchbooks and Finishes always available. Make orders advice on matching the right paper to available. also your project, we invite you to speak with Striking in design, Domtar Feltweave a Domtar representative. Our toll-free h® u s k y Domtar Nekoosa number is below. Best usage For the home For the office D ® Domtar Nekoosa Linen Design O M TA R Acid-free for greater longevity Commercial printing Digital printing the new Domtar — to Publishing resistance to yellowing. Domtar Nekoosa ® Bond NN About Domtar W e ig h t s and Domtar Proterra ® 25% Cotton NNN Among North America’s largest makers DOMTAR About Us ® NNN Domtar Skytone of fine paper, Domtar is also the leader swatchbooks incorporate NNN Cut-size sheets in smooth finish Domtar Solutions ® in environmentally sustainable practices, DO MTA R are guaranteed to perform on laser from the forest floor to your front door Domtar ® NNNsetting the pace for all others. That’s a Archival Hots ®

As North America’s largest integrated manufacturer — and marketer of fine paper and a ® Colors hots printers, desktop ink jet printers and Domtar Cornwall NNNgood thing — but it’s not nearly enough. all the best features recognized leader in environmentally-sustainable practices, we believe our customers NNN color copiers. Please see stocking Domtar Hots ® Because we believe customers deserve Use Domtar Hots ® NNNNmany more reasons for choosing Domtar. chart for additional information. deserve even more. Domtar Offset Whitehall A little heat goes a® long and way.watch A thelot oftemperature heat goes even climb further. So when you Such as superlative quality, dedicated hot s NNNN want to spice up an announcement, presentation, newsletter Domtar Offset Windsor ® Electronic in format and look. NNNNservice and continuous innovation. Such At Domtar we strive to do everything Domtar Opaque Plain eld much any project that could use a shot of pure adrenaline, reach for the ® as doing everything right — from the forest earn your confidence and your business through the offering of superior quality Domtar Titanium N concentrated heat of Domtar Hots. ® floor to your front door — to earn your Imaging With a maximum skid height of 45", ® Domtar Antimicrobial Of ce Paper N confidence and your business. So if you’re products, dedicated service and continuous innovation. our press ready skids easily fit into — Compelling photography Domtar NNNlooking for printing, publication or business or pretty ® Copy  most presses. Domtar ™ NNNNpapers with a different feel, look to Domtar. If you’re looking for distinct paper solutions for your printing, publishing or business ® 92 Recycled Copy Domtar EarthChoice N brightness Press Ready provides life-like images communications, look to Domtar to answer your every need. NNN 1 8 Domtar Microprint ® Of ce Paper colors Plenty of high-impact colors to NN Domtar Microprint ® Coated Laser mix NN Smooth, Skids and match, and to maintain Domtar Microprint ® Color Copy N your projects’ freshness. of print demonstrations NN ® Domtar Microprint DPT N V eul m & NN ® Domtar Microprint Inkjet N NN R e p yl C a rd Finish Domtar ® The vellum finish enhances ® Laser N with full ink coverage. Multi-System Ultra NN Domtar Domtar EarthCote N NN Hots’ bold colors with ® Press a Domtar N touch of texture. ® Featherweight Opaque NN Domtar Lighthouse N Ready W e ig h ts Domtar Ocean ® ® N Skids Domtar Offset Westminster Cote Specify Domtar Hots in text N Domtar Opaque Westminster or cover ® N weights. Domtar ® Printers Opaque ® N Domtar Rampart Archival N Stored archivally, acid-free Domtar Schooner ® Opaque N Domtar Domtar Vista ® Hots will resist fading, ® N yellowing and crumbling with age. Domtar Vista Opaque ® N Domtar Tradebook Ultra Westminster Electronic N N ® 1 Imaging 50 lb. & 60 N 7 lb. text are guaranteed colors on laser and inkjet printers, N as well as copiers (subject to manufacturer’s restrictions). How to reach us text Special cover & weights Handling See our Domtar Hots is made with Web site water-soluble dyes, so guard against domtar.com/en/paper excessive moisture and light. Talk to our acid- knowledgeable Don’t be shy about asking us for samples, swatchbooks, staff tech support or to find out more about Domtar and who we free are. The number below will put you in touch with a Domtar person instantly. For more 1 800 6 information Domtar, about www.domtar.com -D visit us at OMTAR

© 2007 Domtar Inc. Printed in Canada 02/07 Lit. Item # SB0200615

Lit. Item # 30462436 02/08

Printed in the United States

© 2008 Domtar Corporation Business & CHECKING ou could call it fuel for business. Every organization runs on paper and OUT has its own combination of needs for quality, value, environmental THE Ycredentials and jam-free performance on office equipment. That’s why many organizations fuel up on Domtar. The North American leader in BEST Business and Office Papers, Domtar manufactures several well-known mill brands, as well as a variety of well- known private brands.

Brand Your Own

Domtar has a private brand manufacturing program that allows customers to enhance their brand identity and end-user relationships by selling high-quality cut size business and office papers with their own unique branding elements. Customized packaging allows customers to have their own unique labels, cartons and ream wrap. Domtar currently produces over 600 private brands. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Paper is part of everyday life ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 25

Business and Office Papers accounted for approximately 43% of Domtar’s shipments of paper products in 2007. The Company produces over 2 million tons, which represents an estimated 37% market share. Office papers

Some of Domtar’s best includes:

First Choice ® The first family of business papers, FirstC hoice is preferred for its superior reproduction quality and range of choices. from left: The dazzling white surface is ideal for reports and proposals, Michael Cross as well as letterheads, business cards and invitations. There’s Vice-President, Financial a First Choice paper that’s compatible with most copiers and Reporting & Compliance, printers, delivering superb results in black and white or color. Head Office Mélanie Paillé Senior Manager, Financial Planning & Domtar EarthChoice ® Office Paper Analysis, Head Office North America’s first 100% virgin fiber office paper that’s also FSC-certified, Domtar EarthChoice Office Paper is a multi- function sheet that fits every need, on just about any electronic There’s a First Choice imaging equipment. Reliable and versatile, it also helps a paper that’s compatible business make the right environmental choice. with most copiers and

® printers, delivering Domtar Colors To get ahead in business, you first need to get noticed. superb results in black That’s where Domtar Colors comes in. With its stylish pastel and white or color. colors, including white and cream, Domtar Colors is the ideal attention‑getter for reports, menus, newsletters… and pretty much every place where color counts. 26 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Paper is part of everyday life ⁄⁄⁄ 2 0 0 7

publishing papers Fit to print Goes the saying. And if you want to publish Domtar Tradebook well, Domtar’s broad range Specifically designed for today’s of Publishing Papers are demanding book market, Domtar Tradebook is made to PPI standards and designed to make words is available in a broad range of finishes and pictures look their best. and weights, in cream or white. From mass‑market books Choctaw ® and textbooks, to religious A premium coated groundwood, and reference works, to Choctaw is specified for magazines and catalogs, as well as direct mail and catalogs, brochures and other commercial printing applications. much more. Domtar has a Its superior ink holdout yields excellent reproduction and consistency. publishing paper with the specifications, environmental attributes, permanence and value to make any project a real page‑turner. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Paper is part of everyday life ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 27

domtar makes a wide range of specialized papers

and pulp that must Unique End Uses meet demanding for Domtar specifications Products

ʎʎAdult incontinence for food, medical, products the ʎʎBakery liners Pushing and tissues financial and other ʎʎBaking and condiment cups applications. these ʎʎBandage wrap ʎʎBibles ʎʎHymnals include products ʎʎBurger wrappers ʎʎCandy pouches Envelope ʎʎCD and DVD packaging from envelopes and ʎʎChecks ʎʎChurch offering envelopes food wrappers to ʎʎColored gift tissues ʎʎDental tray covers medical gowns and ...and a lot ʎʎDesktop blotters ʎʎDinnerware (melamine) precision bonds for converting, ʎʎDisposable diapers ʎʎDrafting paper – & architectural drawings engineering plans. spe cialty ʎʎDry cleaner more! hanger paper ʎʎElectrical capacitor paper PAPERS ʎʎFeminine hygiene products ʎʎFilter papers – wet and dry ʎʎFinancial proxy statements ʎʎFreezer wrap ® ʎʎGaskets ci2000 ʎʎGasket paper ʎʎIce cream wrap Designed specifically for envelopes that use the more versatile ʎʎLaminate overlay and base paper flexographic printing method, ci2000 is a unique and economical ʎʎLaminated gum and cigarette packages alternative to coated papers. It’s the right choice for banking and ʎʎLollipop and cotton direct mail, for commercial and retail announcements. swab sticks ʎʎMasking tape ʎʎMicrowave popcorn bags ʎʎMolded dining ware Domtar White Wove Envelope ʎʎPaint masking tape Its bright white shade and elegant wove finish support ʎʎPerfume boxes ʎʎPharmaceutical inserts the manufacture of premium quality envelopes. Especially when the ʎʎPlastic laminates ʎʎPoint-of-sale envelopes must be precision-made to meet the needs of automated receipt rolls ʎʎPost-it style notes processes and protect corporate reputations. ʎʎPowdered cellulose products ʎʎQuick-serve restaurant packaging ʎʎRestaurant placemats Converting and specialty papers ʎʎSelf-adhesive labels ʎʎShopping bags accounted for approximately 22% of ʎʎSilicone release papers shipments of paper products in 2007. ʎʎSteel interleave paper ʎʎSugar packets These specialty applications range from ʎʎSurgical gowns ʎʎToilet paper and toilet medical gowns to food wrappers. paper wrap 28 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Paper is part of everyday life ⁄⁄⁄ 2 0 0 7 R&D

SpecialtyPapers New Product Development

At Domtar, developing new and innovative products and solutions for customers is key to the Company’s longevity. In 2007, over 12,000 tons of new products were added to the Company’s specialty portfolio, bringing Domtar’s total specialty papers production capacity to 420,000 tons.

Customer requests often drive new product development. Recently, a customer asked if Domtar could develop paper that could resist charring in a high-temperature cooking application. Initially, the idea of a paper that wouldn’t char or brown was quickly dismissed as impossible. But through creative thinking, Domtar began lab and trial work to explore possible options. ‘‘Domtar employees were ultimately able to unlock technologies that could indeed reduce paper browning in this type of application,’’ said Cindy Krzysiak, Domtar Technology Manager.

Various internal and external evaluations during the develop- ment process brought very favorable results in comparison to competitive products. Domtar zeroed in on key scientific data and was able to customize the product to provide the best resistance to heat-induced browning. Further experimentation allowed Domtar to offer the attributes of grease resistance, wet strength and release properties to this base sheet, thus from left: ­surpassing the original customer request while helping to Krista diversify the product offering. Simpson Product Development The Port Huron, Michigan facility qualified production of Specialist, this first new commercial application of 24lb. CP Wrap in early Espanola, ON spring of 2007. Dave Groleau Technical Group – Senior Analyst, (retired in 2007), Espanola, ON Choosing When it comes to acting greener in paper consumption, one papermaker stands out with a product line Earth that meets your highest Breaking away Given the confusion that one can find in the marketplace standards. Domtar about what constitutes an environmentally friendly EarthChoice® is a product, Domtar ensured that its EarthChoice line would complete and innovative be easily recognizable and straightforward for anyone line of socially and who buys paper. A line of products that would make users feel confident they are making the right choice for environmentally the environment. Domtar’s comprehensive product line responsible papers is positioned as the best choice among environmental that includes paper for products. Purchasing Domtar EarthChoice products a variety of end uses. also makes a supportive statement about Domtar’s commitment to responsible environmental practices. The EarthChoice line of products are certified Domtar EarthChoice offers users the peace of mind to Forest Stewardship of knowing that they are doing the right thing for the environment. Council (FSC) standards, publicly endorsed by The Domtar EarthChoice family includes paper for the Rainforest Alliance a variety of end uses, including corporate identity materials, business and office applications, digital and supported by printing, direct mail, transaction printing, converting, WWF–Canada. publishing and unique specialty applications.

The premiere product in the EarthChoice line is Cougar®, a premium uncoated opaque containing 10% post-consumer recycled content. Other grades include Hots®, EarthChoice Office Paper, along with many other publishing, converting and digital papers.

Domtar has designed this line for companies that are outspoken about their commitment to protecting the environment as well as on other environmentally sensitive issues.

www.domtarearthchoice.com green. It’s your choice.

www.domtarearthchoice.com system production H D ar omt IG H L Y FLEXI ’s B LE 31 Espanola Mill •1945 Mill Espanola

MILLS, CONVERTING & DISTRIBUTION CENTERS Windsor Mill •2002 Mill Windsor 32 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7

The History With manufacturing of Paper or distribution Paper is one of the oldest means of facilities in 37 of communicating and recording ideas, the 50 U.S. states with a past that stretches back almost and seven of the ten 5,000 years. It will continue to allow AN EXTENSIVE Canadian provinces, upcoming generations to see into MANUFACTURING that past as well as dream the future. NETWORK Domtar is less than a day’s truck drive from more than 80% of the entire North American population. ALLY D C I Papermaking has come a long way since the Ancient Egyptians, Romans and Greeks used papyrus and other fiber to make G paper. Over time there have been many significant developments in technique. The origins of the processes in use today go back about 200 years. Papermaking is now a high speed, technology-intensive process that bears little resemblance to past production methods, except that the skills of papermakers still make the difference between a good sheet of paper and a great sheet of paper. Domtar is proud that its papermakers, often representing generations of experience, design and make papers for customers around the world. POSITIONE STRATE Domtar’s pulp and paper facilities are Plus, Domtar’s facilities are close to For Domtar, Big Means More Attentive strategically located to take advantage of major shipping ports, which makes its Domtar is a major corporation but it remains prime papermaking wood species. With manufacturing system even more competitive close to its customers. In every area — from distribution facilities stretching coast and enables Domtar to efficiently service paper design to manufacture, and from to coast, from St. John’s, Newfoundland to international customers. converting to delivery — Domtar’s team of Miami, Florida, and from Cerritos, California highly committed and dedicated professionals to Vancouver, British Columbia, Domtar is strive continuously to respond quickly to meet able to deliver paper products that meet the needs of each and every customer. every customer’s demands.

Jean-Jacques Letuel Cutter, JBR, La Maison du Papier ✪ montreal, QC head Office  395 de Maisonneuve Blvd. West Montreal, Qc h3A 1L6 ● FORT MILL, SC operations Center 100 Kingsley Park Dr. Fort Mill, SC 29715-6476

 

      MONTREAL, QC, CANADA     )   

● pulp & Paper Mills  1 ashDOWN, AR  933,000 St of paper  per year 86,000 ADMT of pulp  per year   2 columBUS, MS 238,000 St of paper   per year

3 DRYDEN, ON   151,000 St of paper foot per year ● converting 197,000 ADMT of pulp ● forms and   per year Distribution  Operations  4 espanola, ON    77,000 St of paper 1 ashDOWN, AR     per year (Converting and FORT MILL, SC, USA 114,000 ADMT of pulp Distribution  per year Operations — Onsite) 

5 hawesvILLE, KY 16 BROWNSVILLE, TN 634,000 St of paper (Converting and per year Distribution 47,000 ADMT of pulp Operations — Offsite) per year print 17 cerrITOS, CA 6 JOHNSONBURG, PA (Converting, Forms 374,000 St of paper and Distribution per year Operations — Offsite) 24 owensBORO, KY 7 KAMLOOPS, BC 18 DALLAS/FORT WORTH, TX (Converting and 477,000 ADMT of pulp (Converting, Forms Distribution per year and Distribution Operations — Offsite) Operations — Offsite) 8 KINGSPORT, TN 25 rIDGEFIELDS, TN ● sawmills 425,000 St of paper 19 DUBOIS, PA (Converting and per year (Converting and Distribution 30 BIG RIVER, SK Distribution Operations — Offsite) 250 Mfbm per year 9 marlBORO, SC Operations — Offsite) (not operating) 391,000 St of paper 26 rocK HILL, SC per year 3 DRYDEN, ON (Forms 31 ear FALLS, ON (Converting and Manufacturing 190 Mfbm per year 10 neKOOSA, WI Distribution Plant) 167,000 St of paper Operations — Onsite) 32 leBEL-SUR-QUÉVILLON ● head Office /Operations Center per year 13 rothschILD, WI 140 Mfbm per year converting, Forms Operations 20 grIFFIN, GA (Converting and (not operating) ● 11 plymouth, NC (Converting and Distribution ● pulp and Paper Mills 489,000 St of paper Distribution Operations — Onsite) 33 matagamI, QC sawmill Operations per year Operations — Offsite) 100 Mfbm per year ● 153,000 ADMT of pulp 27 tatum, SC ● Distribution Facilities per year 21 INDIANAPOLIS, IN (Converting and 34 naIRN CENTRE, ON (Forms Distribution 130 Mfbm per year 12 port HURON, MI Manufacturing Operations — Offsite) (not operating) All paper tonnage is expressed in short tons (St). 116,000 St of paper Plant) All pulp tonnage is expressed in air dry metric per year 28 terreBONE, QC 35 ste-MARIE, QC tonnes (ADMT). 22 langhorne, PA (Converting and 70 Mfbm per year All wood capacities are expressed in million 13 rothschILD, WI (Forms Distribution foot board measure (MFBM). 147,000 St of paper Manufacturing Operations — Offsite) 36 sullIVAN, QC per year Plant) 75 Mfbm per year Paper tonnage is expressed by mill capacity. 29 washINGTON COURT Pulp tonnage is expressed by mill trade pulp. 14 wINDSOR, QC 23 mIRA LOMA, CA HOUSE, OH 37 tIMMINS, ON 670,000 St of paper (Converting and (Converting and 140 Mfbm per year Notes: per year Distribution Distribution Lebel-sur-Quévillon, Quebec is indefinitely idled. 33,000 ADMT of pulp Operations — Offsite) Operations — Offsite) 38 val-D’OR, QC Port Edwards, Wisconsin will be permanently per year 160 Mfbm per year closed in the second quarter of 2008. 11 plymouth, NC 14 wINDSOR, QC 15 wooDLAND, ME (Converting and (Converting and 39 whITE RIVER, ON Prince Albert, Saskatchewan is indefinitely idled. 398,000 ADMT of pulp Distribution Distribution 110 Mfbm per year Grand-Remous and Malartic sawmills are per year Operations — Onsite) Operations — Onsite) (not operating) indefinitely idled. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 35



 

      MONTREAL, QC, CANADA     )   

       

 

            FORT MILL, SC, USA  overview of mills Domtar

● Distribution, supply and service Facilities paper categories

Enterprise Group Domtar Distribution Group Business papers COATED GROUNDWOOD Albuquerque, NM Kent, WA Albany, NY UnCOATED FREESHEET Application: cards, packaging, Birmingham, AL Knoxville, TN Boston, MA magazines, catalogs. Boise, ID Lakeland, FL Buffalo, NY Copy, premium imaging / Boston, MA Langhorne, PA Cincinnati, OH technology papers. Buena Park, CA Las Vegas, NV Cleveland, OH Converting AND Buffalo, NY Lexington, KY Columbus, OH Application: photocopies, office SPECIALTY PAPERS Calgary, AB Little Rock, AR Covington, KY documents, presentations. Cerritos, CA Livonia, MI Dallas / Fort Worth, TX UNCOATED FREESHEET Chandler, AZ Louisville, KY Dartmouth, NS Charlotte, NC Memphis, TN Dayton, OH COMMERCIAL PRINTING Business converting, flexible Chattanooga, TN Miami, FL Fort Wayne, IN AND PUBLICATION PAPERS packaging, abrasive papers, Cincinnati, OH Milwaukee, WI Harrisburg, PA Cleveland, OH Montreal, QC Hartford, CT UnCOATED FREESHEET decorative papers, imaging papers, Columbus, OH Nashville, TN Indianapolis, IN label papers, medical disposables. Denver, CO Oklahoma City, OK Kalamazoo, MI Offset. Des Moines, IA Omaha, NE Lancaster, PA Application: pamphlets, brochures, Application: forms and envelopes, Duluth, GA Peoria, IL London, ON food & candy wrappers, El Paso, TX Pittsburgh, PA Montreal, QC direct mail, commercial printing. Evansville, IN Richmond, VA Mt. Pearl, NL Lightweight, opaques, text, surgical gowns, repositionable Fridley, MN Rock Hill, SC New York, NY note pads, security check papers. Ft. Smith, AR Salt Lake City, UT Ottawa, ON cover & writing. Ft. Wayne, IN San Antonio, TX Philadelphia, PA Application: stationery, brochures, Garland, TX Shreveport, LA Quebec City, QC Harahan, LA St. Louis, MO Southport, CT annual reports, books, catalogs. Hayward, CA Syracuse, NY Toronto, ON Hoboken, NJ Toronto, ON Washington, DC / Baltimore, MD Houston, TX Tulsa, OK Indianapolis, IN Vancouver, BC Jackson, MS Vancouver, WA Jacksonville, FL Wayland, MI Kansas City, KS West Chicago, IL Ashdown Mill Today, if all the paper produced at the Ashdown mill were loaded onto trucks for shipment, the convoy would reach from Boston to Washington, D.C.

History Mill Products Achievements Contact performance

Original mill Annual paper production Uncoated freesheet FSC Chain-of-Custody Domtar opened in 1968. capacity of 933,000 tons. papers: Offset, copy certified. Ashdown Mill paper, laser form bond, 285 Hwy 71 South Second paper machine Annual pulp production SFI certified. 3M Notepad, check paper. Ashdown, Arkansas added in 1975. capacity of 810,000 tonnes ISO 9002 certified. – includes 86,000 tonnes Bleached hardwood 71822 Third paper machine Tammy Waters of mill trade pulp. and softwood kraft ISO 14001 certified. Telephone: 870-898-2711 Communications and and new pulp line market pulp. Arkansas Environmental Fax: 870-898-4724 Training Coordinator added in 1979. 3 pulp lines and 4 paper machines. Federation Diamond Fourth paper machine Award Winner for and new pulp line environmental added in 1991. excellence. Became part of Warren L. Allen, general Domtar Inc. in 2001. manager – 2005 Paper Industry Management Association Mill Manager of the Year. Chairman’s Best Safety Performance Award. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 37

Spanning the length of two football fields, the Ashdown Express produces sheets 32 feet across — the width of a residential boulevard. If it operated continuously for 24 hours at its maximum speed of 4,000 feet per minute, it would produce a continuous sheet stretching 1,000 miles.

Shirley Jackson Shipping

Jack Dossey A-2 Operator

one of the largest uncoated freesheet mills in north america

Jr Kervin Maintenance 933,000 tons from left: Lonnie Seamster he Ashdown, Arkansas mill is one of Stock Prep Helper, PM 62 the largest fully integrated, low-cost Larry Erwin T business and commercial printing paper Machine Tender, PM 62 mills in the world. It also produces bleached kraft pulp. With four paper machines producing over residential boulevard. If it operated continuously 2,500 tons daily, Ashdown has the capacity to serve for 24 hours at its maximum speed of 4,000 feet a broad cross-section of customers. per minute, it would produce a continuous sheet stretching 1,000 miles. The mill’s flagship paper machine, the Ashdown is customer-driven, quality-focused Ashdown Express, was started up in 1991 as the and environmentally responsible. The mill recovers culmination of a 25-year project to build the and reuses millions of gallons of water every day. mill. It is among the world’s largest and most Its state-of-the-art wastewater treatment facility technologically advanced. Spanning the length includes a 750-acre aeration system and settling of two football fields, the Ashdown Express pond system where water is treated for 25 days produces a sheet 32 feet across — the width of a before discharge. Hawesville Mill In 2005, the U.S. Environmental Protection Agency and the U.S. Department of Energy awarded the mill a Combined Heat and Power Energy Star in recognition of the facility’s efforts in energy efficiency and pollution reduction qualities.

History Mill Products Achievements Contact performance

Original mill opened Annual paper production Uncoated freesheet: SFI certified. Domtar by Willamette in 1967. capacity of 634,000 tons. Xerographic, offset, ISO 14001 certifiable. Hawesville Mill EDP Facestock, Hwy 1406, First fine paper Annual pulp production Engineering Laser EPA combined Heat 58 Wescor Road machine in 1981. capacity of 455,000 tonnes & Air Award. – includes 47,000 tonnes Bond, Forms Bond. Hawesville, Kentucky Acquired by of mill trade pulp. 1999 Reclamation Award. 42348 Weyerhaeuser in 2002. 1 pulp line and Telephone: 270-927-6961 Nancy Became part of 2 paper machines. Fax: 270-927-9929 Schroeder Domtar in 2007. Yard Crew

Tim Hiegel Lead Operator, Bleached Pulp Mill Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Our production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 39

Sherrill Wettstain Winder Operator, H2

Jamie Hogston Loader Fine Paper

from left: Jeremy Cox Wet End Assistant Juanita Giltner Process Tester Jon Miller H1 Superintendent Joe Wilborn Winder Operator one of the largest Joey Watkins uncoated freesheet Reserve mills634,000 in north america tons

ituated on the banks of the Ohio River and has converted approximately 15 acres of in Hancock County, Kentucky, the non-productive farmland to native grasslands. S Hawesville mill is a paper facility with The mill generates approximately 60% of the two paper machines and a bleached pulp mill. electricity it needs with an onsite steam turbine Most of the pulp is used as raw material for the generator. Virtually all of this onsite-generated onsite papermaking and the rest is either sold or electricity is produced through renewable energy used by other Domtar facilities. sources and certified as ‘‘green power”.T he balance of the mill’s electric power needs is purchased The pulp and paper mill is a 300-acre through a local electrical coop. industrial facility within the Company’s 2,200-acre property. It is surrounded by corn, soybean and wheat fields as well as educational and recreational wetlands. The mill’s management Carroll has also created a wetland area for waterfowl Craig Instrument Journeyman Kingsport Mill The K1 paper machine is extremely reliable; in 2007 it produced a continuous sheet of paper without interruption for over 8 days. If it had been unreeled, that sheet would have been more than 9,000 miles long!

Adelia History Mill Products Achievements Contact Gilliam performance Winder Original mill Annual paper production Uncoated freesheet: SFI certified. Domtar Assistant opened in 1916. capacity of 425,000 tons. Xerographic. ISO 14001 certifiable. Kingsport Mill 100 Clinchfield Street Acquired by Mead Annual pulp production Governor’s Kingsport, Tennessee in 1920. capacity of 272,000 tonnes. Manufacturing 37660 Acquired by 1 pulp line and Excellence Award. Telephone: 423-247-7111 Willamette in 1995. 1 paper machine. 2006 Tennessee Work Fax: 423-392-2719 Acquired by Training Grant. Weyerhaeuser in 2002. Became part of Domtar in 2007. ENVIRONMENT from left: Randall Kilgore Only sulfur-free Tester pulping process in the United States. Karen Collins 2006 Tennessee Chamber Tester Environmental Award. State Clean Air Award. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 41

Kingsport is the only mill to use a sulfur-free pulping process in the United States. Through the Soda-AQ process, the pulp fiber is strengthened and the cooking process creates

virtually no odor. from left: Steve Sarginger one of the Staff Supervisor Brenda largest uncoated Willis Roll Lineman freesheet mills Marcus Harless in north america Roll Lineman

Jimmy Gilliam Power Assistant 425,000 tons he Kingsport mill is located in the machines in North America, producing paper of Tri-Cities area of Tennessee, on the archival quality. T banks of the Holston River. It has been The facility draws about 11 million gallons producing paper continuously since 1916. of water daily from the Holston River for the papermaking process. This water is reused several The mill was significantly upgraded from times before being discharged into a four-day 2000 to 2003 and equipped with a state-of-the-art effluent treatment system to be thoroughly computerized system linking and monitoring cleaned before returning to its source. Returning all facets of the papermaking process. The mill water is also tested every day to ensure that it now houses one of the most modern paper is clean.

Grady Fleenor K-1 Operator Marlboro Mill The “Marlboro Maverick” produces enough paper every month to create a sheet of paper 27 feet wide and long enough to circle the globe at the equator.

History Mill Products Achievements Contact performance

Original mill opened Annual paper production Uncoated freesheet: SFI certified. Domtar by Willamette in 1990. capacity of 391,000 tons. Xerographic, offset, ISO 14001 certifiable. Marlboro Mill envelope. 585 Willamette Road Acquired by Annual pulp production 2005 and 2007 Bennettsville, Weyerhaeuser in 2002. capacity of 356,000 tonnes. South Carolina South Carolina 29512 Became part of 1 pulp line and Environmental Telephone: 843-479-0200 Domtar in 2007. 1 paper machine. Excellence Program Award. Fax: 843-479-0608 1996 Pollution Bettie Prevention Award. Fleming Executive ENVIRONMENT Secretary

O2 delignification. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 43

Angalena The Marlboro Mill was Keller constructed in 1989 and Mill Technician 1990 and was one of the first paper mills designed entirely by engineers using computers. one of the largest uncoated freesheet mills in north 391,000 america tons

Anna L. Smith Chip Yard Technician

he Marlboro mill, located along the for construction. In fact, Marlboro’s environmental Great Pee Dee River in South Carolina, is commitment can be seen in virtually every facet of T a state-of-the-art papermaking facility. its operation. Bark residues, spent pulping liquor, Distinctive qualities, from computer-aided design sander dust and rejected chips are burned to to innovative employment and engineering create steam instead of going into a waste stream. philosophies, make Marlboro a North American leader in quality papermaking.

Every paper reel goes through quality Jade control tests for grade, brightness, opacity and Cowan strength. Marlboro uses an extra press to ensure Mill Technician that sheets have greater uniformity on both sides. The facility produces paper of archival quality. Strict environmental controls were planned for the mill before one shovelful of dirt was moved Windsor Mill The current Windsor mill, which began operations in 1987, stretches a mile long!

History Mill Products Achievements Contact performance

Originally built by Angus, Annual paper production Uncoated freesheet FSC Chain-of-Custody Domtar Logan & Co. in 1865. capacity of 670,000 tons. papers: Photocopy paper, certified. Windsor Mill MICR (Magnetic Ink 609 Rang 12 Acquired by Dominion Annual pulp production SFI certified. Character Recognition), C.P. 1010 Tar and Chemical capacity of 454,000 tonnes Forms Bond and ISO 9001 certified. Windsor, Quebec Company in 1961. – includes 33,000 tonnes of mill trade pulp. computer paper, Xerox On-Time Delivery. J1S 2L9 The new mill began envelope paper, offset Telephone: 819-845-2771 operations in 1987. 1 pulp line and printing paper, bleached Fax: 819-845-8398 2 paper machines. wet-lap market pulp.

André ENVIRONMENT Leblanc Process Engineer – Technical Services Responsible Care Program certification. Serge St-Laurent Paper Machine No. 7 Tender Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 45

Nathalie Bazin Accountant – Analyst

one of the largest uncoated freesheet mills in north america 670,000 tons

from left: Luc Tommy Beaudet Poudrier Steam and Winder Operator Recovery Bruno Operator Dostie Winder Operator Marc-André Leblanc Winder Operator

he papermaking legacy of the citizens When it comes to air and water emissions, of this small Canadian community solid waste and hazardous materials, Windsor’s T dates back 150 years. The Windsor, procedures are developed and implemented in Quebec integrated mill handles every stage of the most rigorous manner possible. The facility manufacturing, from woodland operations to pulp has one of the lowest water consumption ratios production, papermaking and converting. per ton of finished product in theN orth American pulp and paper industry. The Windsor facility owns 400,000 acres of Time after time, the Windsor mill employees private lands in southern Quebec and Maine. These find new ways of improving on what they do properties are all FSC, ISO 14001 and SFI certified. best: maintaining low production costs and This means that it can offer its customers paper manufacturing high-quality products through that meets the most stringent environmental continuous improvement efforts. standards. 46 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7

… and more of the best assets in North America … Based on production capacity, Domtar is the largest integrated manufacturer of uncoated freesheet in North America and the second largest in the world. It has extremely efficient and competitive assets — including world-class mills that contain the most modern fleet of paper machines in operation today. Domtar mills are set to produce value-added products for which flexibility and service are key. This mix allows Domtar to offer a broad product line to meet a variety of customer requirements. Domtar mills across the United States and Canada employ the latest technology for optimum efficiency and customer service. They work quickly to design and produce high quality papers.

Columbus, MS History Mill Products Achievements Contact performance

Original mill opened by Paper complex became Annual paper production Coated groundwood SFI certified. Domtar Weyerhaeuser in 1980. part of Domtar in 2007. capacity of 238,000 tons. papers. ISO 14001 certifiable. Columbus Mill 1 pulp line and Choctaw papers. PO Box 8093 1 paper machine. 9620 Old Macon Road Columbus, Mississippi Annual pulp production 39703 capacity of 70,000 tonnes. Telephone: 662-329-5660 Fax: 662-329-5686

Dryden, ON History Mill Products Achievements Contact performance

Dryden Power & Timber Acquired by Annual paper production Uncoated freesheet: ISO 9000 certified. Domtar Co. formed in 1911. Weyerhaeuser in 1998. capacity of 151,000 tons. Xerographic, ISO 14000 certifiable. Dryden Mill opaque, offset. 1 Duke Street First paper machine Became part of Annual pulp CSA Z809 and Chain of Dryden, Ontario installed in 1918. Domtar in 2007. production capacity Custody (PFC Annex 4) – P8N 3J7 Acquired by of 319,000 tonnes certified. includes 197,000 tonnes Telephone: 807-223-2323 Avenor in 1994. of mill trade pulp. Fax: 807-223-9317 1 pulp line and 1 paper machine. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 47

Espanola, ON History Mill Products Achievements Contact performance

Original groundwood Became part of Annual paper production Over 200 different ISO 9001 certified. Domtar mill built in 1905 by Domtar Inc. in 1998. capacity of 77,000 tons. grades of technical and ISO 14001 certified. Espanola Mill specialty papers, FSC- 1 Station Road the Spanish River Pulp The hardwood line Annual pulp production certified market pulps, FSC Chain-of-Custody Espanola, Ontario and Paper Company. was extensively capacity of 351,000 tonnes as well as northern certified. P5E 1R6 Purchased by George modernized in 1999. – includes 114,000 tonnes hardwood pulp and Weston Ltd, owners of of mill trade pulp. Telephone: 705-869-2020 northern softwood pulp. E.B. Eddy, from the Brown 2 pulp lines and Fax: 705-869-4901 Co. of New York in 1969. 2 paper machines.

Johnsonburg, PA History Mill Products ACHIEVEMENTS Contact performance

Original mill opened Acquired by Annual paper production Uncoated freesheet: FSC Chain-of-Custody Domtar by Castanea in 1890. Willamette in 1990. capacity of 374,000 tons. Xerographic, offset, certified. Johnsonburg Mill envelope, opaques, Trade 100 Center Street Acquired by Curtis Acquired by Annual pulp production SFI certified. Book, Forms Bond. Johnsonburg, Publishing in 1922. Weyerhaeuser in 2002. capacity of 231,000 tonnes. ISO 14001 certifiable. Pennsylvania Acquired by Became part of 1 pulp line and 2004 AF&PA Forest 15845 Penntech in 1969. Domtar in 2007. 2 paper machines. Management Award for Telephone: 814-965-2521 Cooperative Fish Nursery. Fax: 814-965-6231

Nekoosa, WI History Mill Products Achievements Contact performance

Nekoosa Paper Company Nekoosa-Edwards Annual paper production Value-added fine paper. FSC Chain-of-Custody Domtar established in 1883. merged with Great capacity of 167,000 tons. Uncoated freesheet: certified. Nekoosa Mill 301 Point Basse Avenue Merged to form Northern Paper Annual pulp production Carbonless paper, SFI certified. Nekoosa, Wisconsin Nekoosa-Edwards Paper Company in 1970. capacity of 162,000 tonnes. MICR (Magnetic Ink ISO 9002 certified. 54457 Company in 1908. Great Northern Nekoosa 1 pulp line and Character Recognition) and electronic ISO 14001 certified. Telephone: 715-886-7111 First manufacture Corporation merged with 3 paper machines. data processing Fax: 715-886-7620 of printing and fine Georgia-Pacific in 1990. basestock (EDP). papers in 1930. Became part of Domtar Inc. in 2001. 48 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7

Plymouth, NC History Mill Products Achievements Contact performance

Original pulp mill opened Started fine paper Annual paper production Uncoated freesheet: SFI certified. Domtar by North Carolina Pulp production in 1965. capacity of 489,000 tons. Xerographic, offset, ISO 14001 certifiable. Plymouth Mill opaques, Trade Book. Highway 149 Company in 1937. Became part of Annual pulp production Plymouth, North Carolina First paper machine Domtar in 2007. capacity of 486,000 tonnes 27962 started in 1947. – includes 153,000 tonnes of mill trade pulp. Environment Telephone: 252-793-8111 Acquired by Fax: 252-793-8164 Weyerhaeuser in 1957. 2 pulp lines and

2 paper machines. O2 delignification.

Port Huron, MI History Products Environment Achievements Contact

Original mill built in 1888. Purchased by Lightweight high-opaque Recognized by the FSC Chain-of-Custody Domtar Paper line expanded to E. B. Eddy Ltd. in 1987. printing papers and Governor of Michigan for certified. Port Huron Mill include glazed tissue Became part of lightweight paper, participation in pollution ISO 9002 certified. 1700 Washington Avenue specialty and packaging prevention programs. PO Box 5003 and drug wrapping Domtar Inc. in 1998. ISO 14001 certified. paper in 1916. papers, including Awarded the National Port Huron, Michigan foil laminating base Pollution Prevention Largest supplier of 48060 Three new paper papers, wax laminating “drape gown paper” used Mill Round Table’s 2000 Telephone: 810-982-0191 machines added papers, base papers for for the manufacturing between 1956 and 1969. performance Most Valuable Pollution Fax: 810-982-7124 hot-melt film coating, Prevention Award by the of surgical gowns. Purchased by Annual paper production grease resistant papers, Michigan Pulp & Paper Pentair Inc. in 1983. capacity of 116,000 tons. and selected surgical Environmental Council. No. 6 paper machine 4 paper machines. paper specialties. rebuilt between 1984 and 1985.

Rothschild, WI History Mill Products Achievements Contact performance

Original mill opened Acquired by Annual paper production Uncoated freesheet: FSC Chain-of-Custody Domtar by Marathon Weyerhaeuser in 1973. capacity of 147,000 tons. Opaques, recycled certified. Rothschild Mill Paper Mills in 1909. Became part of Annual pulp production content. SFI certified. 200 N. Grand Avenue Acquired by Marathon Domtar in 2007. capacity of 60,000 tonnes. Rothschild, Wisconsin ISO 14001 certifiable. 54474 Corporation in 1944. 1 pulp line and Acquired by American 1 paper machine. Telephone: 715-359-3101 Can Company in 1957. Fax: 715-355-6347 Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ production system ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 49

… as well as great pulp mills Besides pulp produced in excess of internal requirements at integrated pulp and paper mills, Domtar owns and operates market pulp mills that produce papergrade and specialty pulp. Some of Domtar’s pulps are available with Forest Stewardship Council (FSC) certification.

Kamloops, BC History Mill Environment Achievements Contact performance

Built by Weyerhaeuser Third turbine-generator Annual pulp production Reduction in use of FSC Chain-of-Custody Domtar in 1965, second mill installed in 2003. capacity of 477,000 tonnes. bleaching agents certified. Kamloops Mill in pulp production 2005 Mission Flats Road added in 1972. Became part of 2 pulp lines. SFI certified. through creation of Kamloops, Second largest northern Domtar in 2007. specialty grades. CSA Chain-of-Custody British Columbia bleached kraft mill certified. V2C 1A9 in North America. ISO 14001 certified. Telephone: 250-434-6000 $350 million invested in ISO 9000 certified. Fax: 250-828-7585 capital improvements Products since 1984; $80 million since 2000. Papergrade, specialty.

Woodland, ME History Mill Products Environment Achievements Contact performance

St. Croix Paper Company Annual pulp production Northern hardwood State of Maine FSC Chain-of-Custody Domtar established in 1906. capacity of 398,000 tonnes. market pulp, Governor’s Award for certified. Woodland Mill FSC‑certified pulp. Pollution Prevention. 144 Main Street Acquired by Georgia- 1 pulp line. SFI certified. Baileyville, Maine Pacific in 1963. State of Maine DEP ISO 9001 certified. Commissioner’s 04694 Kraft mill built in 1965. Award for improving ISO 14001 certified. Telephone: 207-427-3311 Became part of water quality in the Maine International Fax: 207-427-4102 Domtar Inc. in 2001. St. Croix River. Trade Center, Corporate Environmental Direct Foreign Excellence Award for Investment Award. Pollution Prevention. Recipient of the Maine Forest Products Council’s Outstanding Manufacturer Award.

A World-Class Distribution system

Earning customer loyalty starts with doing what is required to sustain and satisfy long-term relationships. With the creation of the new Domtar in 2007, two great distribution organizations joined forces to ensure that Domtar customers continue to receive excellent service throughout North America.

The Domtar Distribution Group and Enterprise Group* have been suppliers of choice across the many customer segments they serve, seeking out and providing what they need today and into the future. Through technology that fully integrates products and logistics, continuous improvement that strives to meet ever-changing product requirements and a consultative sales and service approach, the Domtar go-to-market strategy offers cost-effective solutions that result in greater value for customers.

The Domtar Distribution Group is a Enterprise Group’s experienced and distribution network comprised of 30 loca- knowledgeable sales and customer tions across the United States and Canada. service teams, in combination with the It includes four regional paper distributors highly efficient distribution network, serving commercial printers/end users/ ensure support for top-quality product business printers, a group of professionals offerings with excellent service throughout dedicated to publishing solutions, and the North America. There are five strategically consumer and advertising group, serving located forms plants and more than the retail market with marquis and private 60 distribution centers across the U.S. and label products, as well as a full line of paper Canada. Enterprise Group works closely for advertising and communications. Every with equipment manufacturers, designing

division at every location is ready to deliver paper and forms that run smoothly and * enterprise group is involved in the sale and distribution the finest in quality paper, packaging and ensure customer satisfaction. of Domtar papers, notably continuous forms, cut size graphic arts products from Domtar mill business papers as well as digital papers, converting partners to the customer’s door. rolls and specialty products. the nature of nurture What better subjects to show off the beauty and benefits of Cougar paper? Its 98 brightness and excellent ink holdout reproduce color beautifully, and it’s readily available in a wide variety of weights and sizes — yet it’s surprisingly affordable { for a premium printing paper. }

® Cougar

Domtar is pleased to make an annual contribution of $275,000 to WWF from the sale of Cougar brand products. The Mark of Responsible Forestry

© 1986 Panda symbol WWF – World Wide Fund For Nature (also known as World Wildlife Fund) ® “WWF” is a WWF Registered Trademark

For more information about Domtar, please visit us at: www.domtar.com

© 2008 Domtar Domtar home fields one of the most accomplished teams in the team paper business 53 54 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ home team ⁄⁄⁄ 2 0 0 7

The call comes when you least expect it. R It seems your team’s general manager has acquired several top scorers in the draft, and they’ll be playing alongside you in the next big game. R How will they fit into the team? R Will they have the same work ethic… similar values and goals? R As it turns out, the home team is the league’s most favored to go all the way.

“Domtar employees know that in order to meet the challenges of today’s intensely competitive and ever-shifting marketplace, we have to work together and ratchet up our performance,” says Michel Dagenais. “And to do that, we need to be nimbler and more versatile than the competition.” Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ home team ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 55 Home Domtar’s bigger and better home team and the kind of stakes involved in winning is currently 13,000-strong, with about and losing. Every employee knows that 7,500 men and women based in the United the Company’s future largely rests on States and approximately 5,500 in Canada. their performance. Indeed, so keen is Domtar on employees’ ability to think According to Michel Dagenais, Domtar’s and act fast, that the Company upholds Team Senior Vice-President of Human creativity as one of its core values. Resources, it’s a team that understands where it’s been and where it’s going. This is largely because Domtar management always takes pains to share its strategy

While creativity is important to Domtar, occupational health & safety (OH&S) retains its prominence. If anything, Domtar is making an ethical, safe and hazard-free workplace its top priority.

Domtar is also widely promoting its Code of Business Conduct to ensure that employees know their company supports fair and honest dealings in everything it does and that every employee is adequately protected against discrimination and other forms of abuse in the workplace.

“If you expect commitment and dedication, then you have to provide an environment Safety first… that’s as hassle- and risk-free as possible,” explains Michel Dagenais. “People won’t and last give their best unless they feel safe… unless they know safety and security always trump production.”

Domtar is, in fact, investing the necessary resources to not just meet all applicable laws and regulations, but exceed them. The Company wants to go well beyond those minimum standards, by putting OH&S at the center of every management decision.

Domtar’s leadership has even gone on record with an ambitious short-term goal: Domtar aims to be ranked among the industry’s three safest companies to work for by 2009. To achieve such an objective, the Company is integrating its various OH&S systems, sharing best practices between mills, and commissioning regular audits, making Domtar an even better place to work. 56 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ home team ⁄⁄⁄ 2 0 0 7

One team, one goal

Thanks to Domtar’s bigger and stronger Domtar believes that the really big Expectations for Domtar’s future are team, the synergies generated, including synergies happen when everyone feels part therefore high. Because the one company lower costs, higher productivity and greater of the same team, when HR is embedded that’s at the top of the North American efficiencies, are starting to roll in — but in the planning process…and that is standings in uncoated freesheet paper this is just the start. At Domtar, synergy happening on a daily basis, throughout production is setting its sights on also isn’t simply a matter of aligning mills and the organization. leading in the quality of its people. products. It’s also about aligning people.

Performance Management The quality of a company is the reflection of the quality of its employees. At Domtar, Process is you quickly realize this idea is taken to VALUE heart. It points to a focused effort to ensure Domtar employees truly are the industry’s DRIVEN gold standard. And, to ensure that each employee reaches his or her full potential, Domtar values are always front and center.

According to Domtar’s Performance Management Process, the Company’s values support not just continuous improvement college- in the workplace. They also support the individual employee’s bound performance and career. Domtar’s values are: • Commitment from left: • Creativity and innovation Domtar Scholarships Graham Pepper promote higher education. • Entrepreneurship and initiative Accountant, Forest All parents want the very best • Judgment and discipline Products, Head Office for their kids, starting with • Leadership (also on page 53) a college education. That’s • Perseverance and determination Martine why Domtar’s Excellence Dorneval • Professionalism and integrity in Education Scholarship Benefits Administrator, • Respect for others Head Office Program is such a big hit.

The program grants undergraduate scholarships each year, based on academic excellence and future potential. sustain ability Putting Words into Action For Domtar, sustainability is more than just the right thing to do right now. It has formed the basis of its business approach since long before it became fashionable to be green, and has become one of its calling cards inside as well as outside the papermaking industry. a culture of growth

Domtar has built a culture of sustainable growth within its ranks by establishing a collective commitment to acting responsibly in every part of its operations. Rules of behavior on corporate governance, continuous product improvement and development, and stringent internal policies on occupational health & safety, the environment, forest management and fiber use and sourcing have been implemented across the board and are unfailingly upheld. The essence of these policies is derived from the Company’s “sustainability manifesto”, the Statement on Sustainable Growth.

Nothing like having a Rigorous ISO 14001 environmental either the Forest Stewardship Council (FSC), reliable second opinion! management system (EMS) principles are the Sustainable Forestry Initiative (SFI) in place at all Domtar pulp and paper mills, or the Canadian Standards Association For years, Domtar has claimed that certifying except for Windsor, which adheres to the (CSA). Domtar favors FSC, which is arguably its operations to the highest internationally- Responsible Care® program of Canada’s the foremost forestry certification in the recognized standards is the best way to assure Chemical Producers Association. The EMS of world, because it is recognized by leading its stakeholders that its forests, manufacturing all of our forestlands in Canada are certified environmental groups and increasingly and distribution facilities are managed in a under ISO 14001. sought after by customers. responsible and transparent manner. Domtar has made independent third-party certification Certification under nothing Domtar solicits third-party an integral part of its sustainability strategy. audits to verify its compli- less than the most respected ance, good practices and The fact that it chose this path before nearly international standards has management systems for everyone else in the industry speaks not only lent credibility to the Company’s environmental, and health to its willingness to break ground but also to and safety issues. Certification a certain intuitiveness as to where the market professed commitment to under nothing less than the was — and indeed has — headed. ensuring sustainable growth. most respected interna- Many of Domtar’s pulp and paper mills have tional standards has lent credibility to the obtained certification to the internationally- Company’s professed commitment to ensuring recognized ISO 9000 series, a strong Quality sustainable growth. Management System (QMS) based on customer Both customers and leading environmental satisfaction and continuous improvement, and organizations, such as the Rainforest Alliance subject to regular third-party audits. and World Wildlife Fund, have applauded The Company has demonstrated its dedication Domtar’s efforts and supported its EarthChoice® to responsible forestry practices by obtaining line of environmentally and socially certification for all of its operations, under responsible papers. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ sustainability ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 59

Domtar’s PROGRAM SUMMARIES Declaration of Sustainability

Forest Stewardship Council (FSC) The Global Benchmark for Responsible Forest Management fscus.org and fsccanada.org

Domtar’s vision of what it means to be a The Forest Stewardship Council is an international, st responsible company in the 21 century is independent, not-for-profit organization that outlined in its Statement on Sustainable sets global standards for responsible forestry. Growth. The Statement reflects its commitment FSC standards address important economic, social and environmental concerns in the forest products to its three key stakeholders — shareholders, industry — and are widely accepted by over 85 leading customers and employees — answering how environmental groups. each of these stakeholders stands to benefit from its association with Domtar.

• Domtar employees can count on their Sustainable Forestry Initiative® company to do everything it can to keep (SFI) sfiprogram.org them safe and help them grow. • Domtar customers know they are dealing with a supplier that understands The SFI is a fully-independent, non-profit forest and paper certification program that integrates the their needs and shares their concerns perpetual growing and harvesting of trees with the about the environment. preservation of wildlife, plants, soil, water and air Domtar shareholders see how a sustainable quality. In order to be certified, participants in the • SFI program must undergo a thorough, third-party growth approach can help build distinct, review of their operations by an accredited audit firm. long-lasting competitive advantages that translate into financial performance. Responsibility and accountability have COLLABORATION a positive impact on the bottom line.

By clearly defining its position on sustainability, Domtar is pleased to make an annual contribution of $275,000 Domtar is telling the world what it cares to WWF from the sale of Cougar brand products. about and what it is doing to make a difference. WWF Best of all, Domtar has gone from words to © 1986 Panda symbol WWF – World Wide Fund For Nature (also known as World Wildlife Fund) (World Wildlife Fund) concrete actions. ® “WWF” is a WWF Registered Trademark worldwildlife.org and wwf.ca

WWF — the global conservation organization — works Looking ahead with partners to find sustainable conservation solutions that benefit people and nature. Domtar’s quest for sustainability is ongoing and always evolving. Domtar feels that there will always be room for improvement and new challenges Rainforest Alliance (RA) to face. The good news is that, even rainforest-alliance.org as the Company has grown in size and reputation, it has never been afraid This respected environmental group works to protect to ask the all-important question: ecosystems by transforming business and land-use practices, as well as consumer behavior. Participation in what else must we continuously its programs requires meeting rigorous standards that do to make things better? conserve natural resources and biodiversity. 60 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ sustainability ⁄⁄⁄ 2 0 0 7

Domtar’s Statement on Sustainable Growth To satisfy Domtar’s long-term objectives, we manage our financial, environmental and social resources in a responsible and sustainable manner. Furthermore, we respect the viewpoints and concerns of other members of society and accommodate their needs as appropriate to our operations. Striving for excellence in corporate governance and ethical standards, we seek to continuously improve our methods and practices. We will periodically report on our performance.

In the forest

Responsible Forest Management Because we manufacture lumber, pulp and with those who have a stake in the forest and that our forest management practices meet paper, access to abundant, affordable and to conserve the forest for future generations the standards of internationally recognized, secure sources of fiber is critical to our future. by contributing to the development of third‑party verified forest certification We share these resources with many other ecologically meaningful protected areas and programs. Where appropriate, we favor stakeholders, some of which may hold different by adopting sustainable forest management certification according to the standards of forest values. We strive to work cooperatively practices. We are committed to ensuring the Forest Stewardship Council (FSC).

Responsible Fiber Procurement Not all of the fiber we consume originates originates only from forests that are managed values of other stakeholders. We will favor from lands we manage. When procuring from in a sustainable manner. These lands should suppliers who meet the standards of the FSC. suppliers, we will strive to acquire fiber which be third-party certified and respect the forest

At our facilities

Fostering a safe workplace Occupational health and safety is our primary accountability in identifying, preventing and is essential to improving our performance. objective at all of our facilities. We continually eliminating dangerous conditions and risks We will conduct independent audits to verify strive to ensure safe working conditions, equip- of injury or illness. We believe that close compliance, reduce risk, and continually ment and work sites. The cornerstone of our co-operation among management, employees improve on established health and safety approach rests on employee involvement and and where applicable, union representatives, management systems.

Environmentally-sound operations We conduct our activities in a manner that and generating less waste per unit of product plans. Finally, we subscribe to internationally conserves resources. We strive to continually output. We identify, evaluate and control recognized environmental management reduce the environmental footprint of our potential environmental risks and ensure that systems with which independent third parties operations by consuming less, emitting less all of our facilities have effective contingency verify compliance.

In the marketplace

We seek to meet and anticipate the ever- specific yearly objectives regarding the commercializing products such as Domtar changing needs of our customers. We gather development of our new products and EarthChoice®. We ensure the integrity of the and analyze information on market trends services. We are also committed to fostering manufacturing and distribution chain from and consumption behavior, as well as monitor a marketplace that values products that the forest to the market by certifying not only possible forms of product substitution or meet the standards of leading environmental our forest and manufacturing operations, replacement. This data allows us to establish groups; we support this commitment but also our distribution operations. by continually expanding, promoting and

To consult Domtar’s policies and learn more about its commitment to sustainable growth go to www.domtar.com. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ The environment ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 61 the poWer oF BalanCe

hether your passion is “environmental preservation”, “sustainable development” or “corporate social responsibility”, you know there is plenty to be concerned about when it comes to this fragile planet of ours. Maintaining a fine balance W between the four elements needed to sustain life — air, water, fire and earth — is the responsibility of every citizen of the world. That includes major corporations like Domtar. Over the years, Domtar has done a lot to harmonize its business objectives with its growing commitment to becoming greener. It has launched North America’s most comprehensive line of ethical papers, and developed lasting partnerships with leading environmental organizations. Domtar understands that an investment in environmental performance is not a barrier to profitability but rather one of the building blocks of strong financial results. It is simply a matter of balance. The same can be said for the four main elements of Domtar’s environmental program, all of which impact each other — and touch the lives of each and every one of us. Compliance is a given. With ongoing monitoring, all of Domtar’s pulp and paper operations look to go beyond strict compliance requirements and work hard to reduce their environmental footprint.

SO2 emissions (kg / tonne)

25.14 12.31 AIR 10.00 hrough careful and continuous monitoring,

Domtar ensures that nitrogen oxide (NOx , a 8.00 T precursor to smog), total reduced sulphur 6.00 (TRS, odorous compounds) and sulfur dioxide (SO2 , 4.67 a precursor to acid rain) emissions remain well 4.00 below prescribed limits for its mills. Average Domtar = 2.5 kg/tonne 2.00 2.04 1.25 1.40

0.37 0.41 0.52 0.14 0.18 0.23 0.00 0.01 0.02 0.06 Dryden oodland W indsor E spanola Ashdown Marlboro ekoosa / N Plymouth Kingsport Kamloops Columbus W Rothschild Hawesville Port Huron Port Johnsonburg Port E dwards Port Highlight

• SO2 emissions are within prescribed limits at all our mills.

A noteworthy case The Johnsonburg, Pennsylvania facility is subject to stringent regulations as part of a federal NOx emissions trading program aimed at reducing the impact of large electricity generators on regional air quality in the U.S. Sophisticated combustion controls were installed on its power boilers, resulting in a reduction in NOx emissions of 40 percent. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ The environment ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 63 t h e p o W e r o F B a l a n C e Pulp and paper mills consume massive A noteworthy case amounts of water in their various The Plymouth, North Carolina mill has developed a system to recycle non‑contact processes. This water is generally sourced cooling water into the process during the from local rivers and streams. This makes summer months when water resources are less abundant. Because pumping it crucially important that the resource water into the mill requires a lot of is used responsibly and that any effluent energy, this initiative has helped reduce both water and energy use at the mill. discharged is treated according to the highest environmental standards.

Highlights • Water consumption has been stable in recent years at about 76 m3 per tonne produced. • Some of Domtar’s mills, such as Windsor, Hawesville and Johnsonburg, are among the lowest water users in North America. However, such good performance is offset by some of the older mills, where the available technology makes it difficult to reduce water use while not affecting product quality. Current hile some of Domtar’s mills, such as Windsor, Quebec, Hawesville, Kentucky and efforts to reduce energy waterJohnsonburg, Pennsylvania are among the lowest water users in North America, efforts use and, concurrently, are underway to make all of its mills more efficient. Such initiatives will impact not only greenhouse gas W emissions will see this water consumption levels but also help decrease the amount of energy needed to heat water as number decrease in well as decrease chemical consumption. the coming years.

Water consumption at all of Domtar’s facilities has remained at an average of 76 m3 per tonne of Specific Water Consumption paper produced for the last five years. (m3/ tonne of paper) After water is used to make paper or to cool equipment, it is treated and then discharged into 85.0 public waterways. To protect the population and the natural environment, strict environmental regulations have been implemented at the federal, state and provincial levels for what external pollutants this water can safely contain. Three of the main components in pulp and paper mill 80.0 79.0 effluent are biological oxygen demand (BOD), total suspended solids (TSS) and adsorbable organic

77.2 77.2 halides (AOX). In 2007, all of Domtar’s mills recorded BOD, TSS and AOX levels well below all

75.3 allowable limits, often making the water discharged cleaner than the water pumped into the mill. 75.0 75.0 74.9

70.0 2002 2003 2004 2005 2006 2007 64 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ The environment ⁄⁄⁄ 2 0 0 7

Papermaking is an energy-intensive activity. The fossil fuels traditionally used in the process, such as natural gas, oil and coal, are a major source of greenhouse gas (GHG) emissions. y increasing the efficiency of its manufacturing processes and By increasing the efficiency of its processes reducing its reliance on fossil fuels, which generate CO 2 when B they are burned, Domtar has dramatically decreased its and replacing fossil fuels with alternative GHG emissions in recent years. Between 2002 and 2007 alone, it energy sources such as spent cooking liquor recorded a reduction of 21% in emissions generated and 20% in from its pulping processes and biomass (bark GHG intensity. Even more noteworthy is that the Company actually and other wood wastes), Domtar has been increased its pulp and paper production during this same period, making the overall reduction in emissions all the more significant. able to conserve non-renewable resources Domtar is in the process of obtaining third-party verification to while reducing harmful emissions. confirm the accuracy of these numbers.

Pulp and paper mills such as biomass and Electrical power Domtar is A noteworthy case use two primary the recovery of spent at some of the continuously trying In 2003, the Kingsport, Tennessee mill energy sources chemicals during Company’s mills to reduce its energy concluded the replacement of two coal‑fired to power their pulping. Both of comes almost consumption and is boilers with a state‑of-the-art biomass boiler, operations: steam these energy sources entirely from currently enhancing significantly reducing its reliance on fossil and electricity. are carbon-neutral, biomass cogeneration a rigorous energy As of 2007, nearly which means that or the production of program that will fuels for steam generation. By doing so,

70% of the energy the CO2 emitted from steam and electricity promote the further GHG emissions from the Kingsport mill were required by Domtar their combustion from the same use of biomass as a reduced by a staggering 110,000 tons, or the mills to generate is organic in origin, energy source. Other fuel source and the equivalent of taking 33,000 cars off the road. steam came from and as such, viewed facilities benefit optimization of its renewable sources as neutral in terms from run-of-the- processes. of climate change river hydroelectric contribution. generation, whereby the natural flow and elevation drop of a river are used to Hawesville Mill, KY generate power. t h e p o W e r o F B a l a n C e

Many steps continue to be taken, including FSC and SFI certification of all Domtar facilities and the ISO 14001 environmental accreditation for all its pulp and paper mills and Canadian forestlands. In addition, internal policies on fiber use and sourcing, the forest and the environment, are Trees, Domtar’s strictly enforced. primary raw material, But perhaps one of Domtar’s best known earth rely on the integrity friendly initiatives has been its launch and and richness of ongoing development of the EarthChoice® family of environmental papers. Its commitment to this the earth to thrive. line of papers, which uses recycled and/or FSC- This fundamental certified virgin fiber, is not only contributing to the reduction of Domtar’s own environmental truth lies at the footprint but also helping its customers reduce heart of Domtar’s theirs. Leading environmental organizations have endorsed the line, and continue to support commitment to Domtar in its sustainability pursuits. responsible forest Other “land-related” issues, such as landfilling and management. soil remediation, are managed under Domtar’s Without trees, it has comprehensive environmental program. no business and Between 2003 and 2007, the Company successfully no future. It must, reduced the quantity of waste landfilled by close to 36% by maximizing its use of raw materials, therefore, make sure increasing recycling, reusing chemicals previously that it is using this categorized as waste, and putting biosolids to valuable resource in beneficial use. the best renewable In addition, Domtar continues to take remedial action under its Care and Control Program at way possible. a number of former operating sites, mainly in the wood-preserving sector, due to possible soil, sediment or groundwater contamination. The investigation and remediation process is lengthy and subject to regulatory requirements, technological limitations and the allocation of liability among potentially responsible parties. 66 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Social responsibility ⁄⁄⁄ 2 0 0 7

a dedicated commitment t o it s communities As a major employer in many communities throughout North America, Domtar helps to drive local economies through the salaries and benefits it provides to its employees, through regional procurement of goods and services and through the taxes it pays to local administrations and institutions. Domtar also provides assistance to numerous organizations in the regions where it operates.

Domtar also seeks to make a direct and and Canada like the United Way. Every year, positive impact by supporting employees employees donate tens of thousands of dollars who donate their time and skills to worthy to this national umbrella organization. For initiatives. Whether they are helping to every dollar they raise, Domtar contributes an improve the quality of life of their neighbors additional 50 cents. Mills also donate directly by providing Christmas gift baskets to the out of their own budgets to similar initiatives needy in Port Huron, Wisconsin, or coaching in their communities. local sports teams in Kamloops, British Columbia, or volunteering in local schools in Getting Genuinely Involved Bennettsville, Ashdown, Arkansas, Domtar employees have Domtar constantly reaches out to local Marlboro a strong presence in the everyday life of the stakeholders to learn more about their County, SC communities where they work and live. concerns and foster a better understanding Marlboro County Court Domtar considers these dynamic employees of their activities. House — Bennettsville, to be its best ambassadors and the living In Windsor, Quebec, Woodland, Maine, South Carolina was founded in 1819. The embodiment of its commitment to community Ashdown, Arkansas and other communities lifestyle and affluence development. The list of examples of employee where the Company operates, Domtar has are captured by involvement is seemingly endless. created forums at which local stakeholders Bennettsville’s Victorian and Greek revival homes Domtar also provides financial support to can hold discussions directly with Company and public buildings. charitable organizations throughout the U.S. representatives. These Community Advisory Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Social responsibility ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 67

Domtar considers involved employees as its best ambassadors and the living The Artful Dodgers embodiment of United Way inaugural Dodge Ball Tournament, its commitment Espanola, Ontario. From left to right, back row: Brent Weeres, to community Krista Simpson and Lynne Gibson; front row: Dean Ruddy, Murray Ross development. and Ted Priddle.

Teams are made up of key individuals from Supporting Communities local governments and businesses. These Part of the Economic Backbone teams meet regularly to provide feedback on Domtar’s North American footprint affects 37 U.S. states and seven Canadian community activities and receive updates on provinces. With 15 major facilities — 13 paper mills and 2 pulp mills — Domtar plays a what is happening at their respective mills. key role in the economic development of the communities where it is established. In addition, many mills regularly host open The economic impact of such a physical presence can take many forms. The houses, inviting neighboring residents and beneficial effects range from providing stable income to its employees to providing schools to tour the mills and learn about how a tax base for municipal, school, state or provincial and federal administrations. they operate. An overview of the taxes paid last year by Domtar facilities to local and county In the area of forest preservation, administrations in Maine, Arkansas, Kentucky, Tennessee, Ontario and British Columbia Domtar participates in the Canadian Boreal shows that they each ranged from $1.8 to $6.2 million. Leadership Council, and works with numerous Having a Domtar facility in a geographic area can also sustain a healthy supply stakeholders who share in the common goal of economy. The value of local and state or provincial procurement contracts issued by preserving the Canadian boreal forest. These Domtar facilities can range in the tens of millions of dollars in any given year. include First Nations, a variety of conservation When all the economic benefits resulting from the presence of a major Domtar groups such as WWF-Canada and other facility are added up (e.g. wages and salaries, local supply contracts, taxes, indirect resource companies committed to sustainable benefits such as job creation), the total reaches, and in some cases exceeds, development. $250 million a year. 68 ⁄⁄⁄ Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Social responsibility ⁄⁄⁄ 2 0 0 7 a dedicated commi t men t t o i t s Communities

firstnations Strengthening Ties with First Nations

Domtar recognizes and respects the legal and managers send the information to local bands. customary rights of indigenous peoples to use Domtar also encourages young Aboriginals and manage their traditional lands, territories to choose forestry as a career through college and resources. This includes and university bursary programs, some of Domtar ensuring that each indigenous which offer students summer employment. cooperates in the community where the Company Furthermore, Domtar remains committed establishment operates is directly involved to paving the way for mutually beneficial of employment in defining its interests and sustainable economic development through opportunities concerns in order to have the shaping of business strategies and for members of them incorporated into the cultural partnerships with local First Nation First Nations Company’s forest management communities. This was the case in 1997, when and fosters plans before any forest the Waswanipi Cree community of Northern sustainable operations are undertaken. Quebec entered a partnership with Domtar development in In an effort to follow sound to allow this First Nation to operate the these communities. business practices while Nabakatuk sawmill; it was also the case with respecting the traditional rights of First the Passamaquoddy Tribe near Domtar’s Nations, Domtar continuously takes steps to Woodland, Maine facility where the Company ensure that members of these communities transferred the deed to Gordon’s Island on actively participate in public lands manage- Big Lake to the community in 2001. The island ment. Domtar also aims to achieve such had special cultural significance to the mem- involvement through its ongoing commitment bers of this First Nation and the land is now to certifying directly managed lands under preserved for posterity. the rigorous guidelines set by the Forest Stewardship Council (FSC). Furthermore, Domtar cooperates, where possible, in creating employment oppor- tunities for members of First Nations and contributes to the sustainability of these communities. Indeed, Domtar makes it a priority to recruit employees from local First Nations communi- ties. When a job opening is available, Company Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Social responsibility ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 69 Cultivating a relationship patches of purple loosestrife were located and promptly eradicated. Additional sight­ings of the latter have been recorded, suggest­ing that the with the species may eventually gain a stronger foothold in the region. But for now, the Woodland team is Passamaquoddy still in a position to check its spread. Cultural Plant Study Medicine men and women still practice Tribe tradi­­tional herbal medicine among the Passamaquoddy. These remedies are used for physical and spiritual well-being within the community. The uses and special properties of these plants are a closely guarded secret within the people, who maintain an oral rather than written tradition. Specialists at Domtar’s Woodland mill had the privilege of learning about these culturally significant species and have been conducting regular surveys of the plants since 1995, including an overnight field study with a local medicine man. The purpose was to monitor

An aerial view of St. Croix study area habitats and identify new locations where the Natives can gather specimens.

The Passamaquoddy Tribe of Maine has two The objectives of this study were to locate Scenic and Aesthetic Study reservations neighboring the Woodland mill. muskrat habitats around the St. Croix River, While scientific research is very important, While relations between the two parties have which runs through Domtar lands, and identify promoting cultural understanding among the not always been smooth, both have acquired any issues that might be endangering their Woodland team and the tribe is equally so. a better understanding of some key issues environment. It has been discovered that there The natural landscape has a spiritual component thanks to a series of Domtar-led scientific are certain areas that attract more of these for the Passamaquoddy. To understand this vision and cultural studies. The data gathered animals, such as large grassy wetlands, and of the world photographs were taken at sunrise through this research, some of which was that current habitats are not being threatened. and sunset (spiritually­ significant times for the conducted in collaboration with residents Native population). A meeting was then arranged of the reservations, was shared among Invasive Aquatic Plant Study with a panel of tribe members to discuss what was all stakeholders. Certain species of plants can encroach on seen in these photos. an area, unbalancing fragile ecosystems and Although this last study was part of a larger Muskrat Study disrupting wildlife and other plant life. One of scientific initiative to obtain a license for dams The muskrat is a culturally important species these species that has made an appear­ance on the St. Croix River system, the opportunity to the Passamaquoddy. Certain parts of the in the Woodland area is the purple looses­trife. was taken to build stronger ties with neighbors animal are consumed during ritual cere­monies. Non-native water milfoils are another species through the appreciation of their culture. And, to this day, some Natives supplement that, although not found in this area yet, is Domtar continues to support the their income by trapping the muskrat and being watched for. During surveys, some milfoil building of positive relationships with local selling the pelts. was found but they were naturally occurring Native communities through these projects non-invasive varieties. However, a number of and other initiatives. ® huskyoffset

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THE ESSENCE being OF onenumber The essence of something is what makes it what it is. It is the core that never changes, that only becomes richer with time and experience. It is the heart, the soul, the spirit.

But can a pulp and paper company truly have a By remaining true to its principles and further sharpen its focus on costs with a view to spirit? It can. This spirit comes to life through fundamental values, Domtar has now reached improving its financial performance and returns a dedication to people, a commitment to the the pinnacle of the North American papermaking to its shareholders. environment and an unwavering focus on industry. In 2007, the Company was transformed The elements of success are in place. Domtar delivering value to those who have a stake in when it combined with Weyerhaeuser’s fine paper now has the largest production capacity for its business. It prevails through expressions business. A culture of efficiency and commitment uncoated freesheet on the continent. It has one of of leadership and perseverance, as well as a emerged to provide the needed edge to become the most extensive distribution networks, capable willingness to continuously raise the bar in search one of the most cost-competitive papermakers in of quickly delivering products to customers of excellence. North America. Moving forward, Domtar aims to wherever and whenever they want them. Domtar ⁄⁄⁄ A n n u a l R e v i e w ⁄⁄⁄ Conclusion ⁄⁄⁄ 2 0 0 7 ⁄⁄⁄ 72

Domtar’s strength in production and distribu- has been well worth the effort. The recognition tion is matched by the quality of its products that the Company is now receiving from environ- and services. Its portfolio includes some of mental organizations is proof that it has made next the most well-known and respected brands in the right choices. North America. An ongoing focus on its core Over the years, Domtar has evolved to become Upcoming North American markets speaks to a commitment more than it was before. Indeed, while it has 2008 to continuously improve its already outstanding grown in stature, the Company has maintained events service levels. the view that every customer deserves products Domtar and services that meet its needs. Domtar has Annual The soul sought to continuously improve its operations. It Meeting Customers are Domtar’s raison d’être. The has built on its relationships with environmental may 6, 2008 Company’s products are designed to meet their and community organizations to gain a better Montreal, needs. But the true force behind Domtar’s success understanding on how to make a difference. And, Quebec is the men and women working throughout the it has ensured the development of its employees Company. Without their everyday commitment by enlisting them as the architects of the present to excellence and determination in the face of and the future of the Company. the most daunting challenges, Domtar would HOW DESIGN never be able to achieve its goals. Excellence, CONFERENCE This group of consummate professionals is may 18-21 led by one of the most experienced manage- leadership, Boston, ment teams in the business. They have set the Massachusetts Company on a solid path towards future growth commitment and consolidation of its leadership. and pride in a job well done. The heart NPTA Alliance With leadership comes responsibility. Domtar These are Annual understood this long before it reached its current what make up Convention position in the market. Domtar has succeeded october On the previous 21-24 page, from left: in setting itself apart from the competition by the essence stepping forward to face some of the tough Chicago, Elissa of Domtar. Illinois Shorrock challenges that have long plagued the industry. Employee Service Domtar’s ongoing journey towards sustainable Representative, Head Office growth has not been easy. But the satisfaction The essence Frederick of contributing meaningfully to society and the of being Verdy planet through innovations such as independent HR Specialist, third-party certification for many of its operations number one. Head Office Marie Nesly Denis Employee Service Representative, Head Office www.domtar.com If only everything in life was this reliable.

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